Progroup sets tranche sizes, price talk in €750 million two-part secured notes offering

By Paul A. Harris

Portland, Ore., March 20 – Progroup AG set tranche sizes and price talk in its €750 million two-part offering of senior secured notes, according to market sources.

A €300 million tranche of five-year notes, with two years of call protection, is talked to yield 5 1/8% to 5¼%, tight to early guidance of 5¼% to 5½%. Initial talk was in the mid-5% area.

A €450 million tranche of seven-year notes, with three years of call protection, is talked to yield 5 3/8% to 5½%, tight to early guidance of 5½% to 5¾%. Initial talk was in the high-5% area.

The notes in both tranches will price within final talk, a buyside source said.

The Rule 144A and Regulation S for life deal ran a two-day roadshow that was scheduled to wrap up on Tuesday.

Lead bookrunner Deutsche Bank will bill and deliver. Goldman Sachs is also a lead bookrunner.

Commerzbank, Erste Group and LBBW are the joint bookrunners.

The Landau, Germany-based containerboard company plans to use the proceeds to refinance its €600 million of outstanding 3% senior secured notes due March 2026 and for general corporate purposes.

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