By Paul A. Harris
Portland, Ore., Sept. 17 – Pactiv Evergreen priced an upsized $1 billion issue of seven-year senior secured notes (B1/B+) at par to yield 4% on Thursday, according to market sources.
The issue size increased from $750 million.
The yield printed at the tight end of the 4% to 4¼% yield talk. Early guidance was 4¼% to 4½%.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. HSBC Securities (USA) Inc. was a joint bookrunner.
The notes were sold via Reynolds Group Issuer Inc. and Reynolds Group Issuer LLC.
The Lake Forest, Ill.-based manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons, formerly known as Reynolds, plans to use the proceeds, along with proceeds from the Pactiv Evergreen initial public offering, to repay certain debt and transaction fees.
| Issuer: | Reynolds Group Issuer Inc. and Reynolds Group Issuer LLC
|
| Amount: | $1 billion, increased from $750 million
|
| Maturity: | Oct. 15, 2027
|
| Securities: | Senior secured notes
|
| Left bookrunner: | Credit Suisse Securities (USA) LLC
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| Joint bookrunner: | HSBC Securities (USA) Inc.
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 353 bps
|
| First call: | Oct. 15, 2023 at 102
|
| Trade date: | Sept. 17
|
| Settlement date: | Oct. 1
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 4% to 4¼%
|
| Marketing: | Roadshow
|
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