Greif talks $500 million eight-year senior notes to yield 6½%-6¾%; pricing Wednesday

By Paul A. Harris

Portland, Ore., Jan. 29 – Greif Inc. talked its $500 million offering of eight-year senior notes (B1/BB-) to yield 6½% to 6¾%, according to market sources.

Official talk comes tight to initial guidance in the 6¾% to 7% area, a trader said.

Books close at 5 p.m. ET on Tuesday, and the Rule 144A and Regulation S for life offering is set to price late Wednesday morning.

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.

© 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.