By Paul A. Harris
Portland, Ore., Jan. 13 - Polymer Group, Inc. priced an upsized $560 million issue of eight-year senior secured notes (B1/B/) at par to yield 7¾% on Thursday, according to an informed source.
The yield printed on top of the revised 7¾% price talk, which had been lowered from earlier talk in the 8% area.
Citigroup Global Markets Inc. was the left bookrunner for the issue, which was upsized from $530 million. Morgan Stanley & Co. Inc., Barclays Capital Inc. and RBC Capital Markets Corp. were the joint bookrunners.
Timing on the deal was twice moved ahead. The books closed 90 minutes earlier on Thursday than had been anticipated. Earlier in the week, timing on the deal was moved ahead to Thursday afternoon from the originally scheduled Friday pricing.
Proceeds will be used to help fund the buyout of the company by the Blackstone Group. The additional proceeds will be used to reduce the equity by $30 million, to $260 million from $290 million, bringing the equity contribution to 32%.
The issuer is a Charlotte, N.C., producer of non-wovens for the medical and industrial markets.
| Issuer: | Polymer Group, Inc.
|
| Amount: | $560 million, increased from $530 million
|
| Maturity: | Feb. 1, 2019
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Morgan Stanley & Co. Inc., Barclays Capital Inc., RBC Capital Markets Corp.
|
| Coupon: | 7¾%
|
| Price: | Par
|
| Yield: | 7¾%
|
| Spread: | 486 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2015, then callable at 103.875, 101.938, par on and after Feb. 1, 2017 (Special call provision allows issuer to redeem 10% of the notes annually at 103 during the non-call period)
|
| Equity clawback: | 35% at 107.75 until Feb. 1, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Jan. 13
|
| Settlement date: | Jan. 28
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 7¾% (decreased from 8% area)
|
| Marketing: | Brief roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
