International Paper unit Sylvamo starts roadshow for $500 million eight-year notes offering

By Paul A. Harris

Portland, Aug. 9 – Sylvamo Corp. started a full roadshow on Monday for a $500 million offering of eight-year senior notes (expected ratings B1/BB), according to an informed source.

The deal, which was scheduled to kick off on a Monday conference call with investors, will be marketed through Aug. 19.

BofA Securities Inc. is a joint bookrunner, with other bookrunner names expected to surface.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the full coupon, and a 101% poison put.

The Memphis-based uncoated paper producer, which is being spun off from International Paper Co., plans to use proceeds plus borrowings under senior secured credit facilities to make a special payment to International Paper in advance of the spinoff.

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