Capsugel to price $415 million tap of PIK notes due 2019 on Thursday

By Paul A. Harris

Portland, Ore., July 24 – Capsugel SA plans to price a $415 million add-on to its senior HoldCo PIK toggle notes due May 15, 2019 (existing ratings Caa1/B-) on Thursday following a mid-morning conference call with investors, according to a syndicate source.

The notes have a 7% cash coupon, which steps up to 7¾% for PIK payments.

Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., KKR Capital Markets, Mizuho, SMBC Nikko and UBS Investment Bank are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable at 102 on Nov. 15, 2014.

The Morristown, N.J.-based manufacturer of hard capsules and drug-delivery systems plans to use the proceeds to fund a distribution to holders of the company’s capital stock.

The original $465 million issue priced at par on Oct. 31, 2013.

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