New Issue: Berry Plastics upsizes to $500 million, prices eight-year notes at par to yield 9½%

By Paul A. Harris

St. Louis, April 22 - Berry Plastics Corp. priced a massively upsized $500 million issue of eight-year second-priority senior secured notes (Caa1/CCC/) at par to yield 9½% on Thursday, according to an informed source.

The yield printed on top of the price talk.

Bank of America Merrill Lynch, Barclays Capital Inc. and Goldman Sachs & Co. were the joint bookrunners for the quick-to-market issue, which was upsized from $300 million.

Proceeds will be used for general corporate purposes, which may include debt repayment, capital expenditures and the funding of potential future acquisitions.

Berry Plastics is an Evansville, Ind.-based manufacturer and marketer of plastic packaging products.

Issuer:	Berry Plastics Corp.
Amount:	$500 million, increased from $300 million
Maturity:	May 15, 2018
Securities:	Second-priority senior secured notes
Bookrunners:	Bank of America Merrill Lynch, Barclays Capital Inc., Goldman Sachs & Co.
Coupon:	9½%
Price:	Par
Yield:	9½%
Spread:	607 bps
Call features:	Make-whole call at Treasuries plus 50 bps until May 15, 2014, then callable at 104.75, 102.375, par on and after May 15, 2016
Equity clawback:	35% at 109.50 until May 15, 2013
Trade date:	April 22
Settlement date:	April 30
Ratings:	Moody's: Caa1
	Standard & Poor's: CCC
Distribution:	Rule 144A with registration rights
Price talk:	9½% area

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