By Paul A. Harris
Portland, Ore., Aug. 20 – Sylvamo Corp. priced a downsized $450 million of eight-year senior notes (B1/BB) at par to yield 7% on Friday, according to market sources.
The issue size decreased from $500 million.
The yield printed at the wide end of the 6¾% to 7% yield talk and well wide of early guidance in the high 5% area.
The deal underwent covenant changes which primarily bear upon how the company may disburse cash and incur additional debt.
BofA Securities Inc. was at the left of a syndicate of bookrunners that also included J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Agricole CIB, PNC Capital Markets LLC and SMBC Nikko Securities America Inc.
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.
| Issuer: | Sylvamo Corp.
|
| Amount: | $450 million, decreased from $500 million
|
| Maturity: | Sept. 1, 2029
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Agricole CIB, PNC Capital Markets LLC and SMBC Nikko Securities America Inc.
|
| Co-manager: | FHN Financial Securities Corp.
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | 589 bps
|
| First call: | Sept. 1, 2024 at 103.5
|
| Trade date: | Aug. 20
|
| Settlement date: | Sept. 3
|
| Ratings: | Moody's: B1
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% to 7%
|
| Marketing: | Roadshow
|
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