New Issue: Chesapeake Corp. £115 million 10-years yield 10 3/8%

By Paul A. Harris

St. Louis, Mo., Nov. 13 - Chesapeake Corp. upsized its offering of 10-year senior subordinated notes Tuesday to £115 million from an announced £90 million and priced the deal at the tight end of talk, according to a syndicate source. The notes (B2/B+) came to market at par for a yield of 10 3/8%, compared to talk in the 10½% area.

Credit Suisse First Boston and Goldman Sachs & Co. were joint bookrunners. Co-managers were Banc of America Securities and Wachovia Securities.

Issuer:	Chesapeake Corp.
Amount:	£115 million (upsized from £90 million)
Type:	Senior subordinated notes
Maturity:	Nov. 15, 2011
Manager:	Credit Suisse First Boston, and Goldman Sachs (joint)
Co-managers:	Banc of America Securities, and Wachovia Securities
Coupon:	10 3/8%
Price:	Par
Yield:	10.375%
Spread:	592 basis points
Call:	Beginning Nov. 15, 2006 at 105.187, then at 103.458, 101.729,
	declining to par on Nov. 15, 2009
Equity clawback:	35% for three years
Settlement date:	Nov. 19 (T+4)
Ratings	Moody's B2
	Standard & Poor's B+
End

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