Turning Point starts Monday to Wednesday roadshow for $250 million five-year secured notes

By Paul A. Harris

Portland, Ore., Feb. 1 – Turning Point Brands, Inc. was scheduled to kick off a $250 million offering of five-year senior secured notes (existing ratings Ba3/BB) on a late Monday morning conference call with investors, according to a market source.

Management meetings are scheduled to run through Wednesday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Joint bookrunner Barclays will bill and deliver. Fifth Third Securities Inc. and Regions Securities Inc. are also joint bookrunners.

The notes come with two years of call protection. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period. The notes also feature a two-year 40% equity clawback at par plus the coupon, and a 101% poison put.

The Louisville, Ky.-based tobacco products supplier plans to use the proceeds to repay its 2018 credit facility and for general corporate purposes.

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