Greif starts roadshow for $500 million eight-year senior notes; initial talk 6¾%-7% area

By Paul A. Harris

Portland, Ore., Jan. 28 – Greif Inc. started a roadshow on Monday for a $500 million offering of eight-year senior notes, according to market sources.

Initial talk has the deal pricing to yield in the 6¾% to 7% area, a trader said.

The roadshow wraps up on Wednesday, and the Rule 144A and Regulation S for life offering is also expected to price on Wednesday.

Wells Fargo Securities LLC is the left bookrunner. Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch are the joint bookrunners,

Citizens Bank, ING, MUFG, Rabo Securities, TD Securities and U.S. Bancorp Investments Inc. are the co-managers.

The notes become callable after three years at par plus 50% of the coupon.

The Delaware, Ohio-based producer of industrial packaging products and services plans to use the proceeds to fund its acquisition of Caraustar Industries Inc., an Austell, Ga.-based producer of recycled paperboard, from H.I.G. Capital.

Greif also intends to use some of the proceeds to redeem its 7¾% senior notes due August 2019 and to repay its existing senior secured credit facilities.

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