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Published on 6/11/2020 in the Prospect News High Yield Daily.

New Issue: SIG Combibloc prices €1 billion split-rated notes in two tranches

By Paul A. Harris

Portland, Ore., June 11 – Switzerland-based packaging group SIG Combibloc Group AG priced €1 billion of split-rated notes (Ba2/BBB-) in two bullet tranches on Thursday, according to a market source.

Bookrunners were Goldman Sachs, UBS and UniCredit.

The deal included an upsized €450 million tranche of three-year notes, which priced at par to yield 1 7/8%. The tranche size increased from €400 million. The yield printed at the tight end of the 1 7/8% to 2% yield talk.

The upsizing of the three-year tranche was accomplished by shifting proceeds to it from the concurrent five-year tranche, a downsized €550 million of five-year notes that priced at par to yield 2 1/8%. The tranche decreased from €600 million. The yield printed at the tight end of the 2 1/8% to 2¼% yield talk.

The overall deal played to €2.9 billion of demand, which was skewed to the long maturity tranche, the market source said.

The Neuhausen am Rheinfall, Switzerland-based company plans to use the proceeds to refinance a portion of its capital structure.

Issuer:SIG Combibloc AG
Amount:€1 billion
Bookrunners:Goldman Sachs, UBS and UniCredit
Trade date:June 11
Ratings:Moody's: Ba2
S&P: BBB-
Three-year notes
Amount:€450 million, increased from €400 million
Coupon:1 7/8%
Price:Par
Yield:1 7/8%
Call protection:Bullet
Price talk:1 7/8% to 2%
Five-year notes
Amount:€550 million, decreased from €600 million
Coupon:2 1/8%
Price:Par
Yield:2 1/8%
Call protection:Bullet
Price talk:2 1/8% to 2¼%

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