Fiber Bidco hones talk in upsized €1.03 billion two-part notes offering backing Fedrigoni buyout

By Paul A. Harris

Portland, Ore., Oct. 14 – Fiber Bidco SpA set final price talk on its upsized €1.025 billion two-part offering of five-year senior secured notes (B2/B/BB-) on Friday, according to market sources.

The deal, which was upsized from €875 million, is expected to include €300 million to €350 million of fixed-rate notes with two years of call protection, expected to come with an 11% coupon at 97.5 to yield 11¾%. Earlier price talk was 97 to 97.5. Earlier yield talk was 11¾% to 12%. Initial yield whisper was 11½% to 12% at a discount.

There is also a €675 million to €725 million tranche of floating-rate notes with one year of call protection, expected to come with a 600 basis points spread to Euribor, with no Euribor floor, at 90 to 91. Earlier price guidance was in the 90 area.

Books were scheduled to close on Friday.

Goldman Sachs, IMI-Intesa, Morgan Stanley, Santander, Nomura, UniCredit and BPER Banca are the leads.

The Milan-based company plans to use the proceeds plus a €150 million term loan A, a €150 million revolver, €584 million of sponsor equity and a €308 million vendor loan to fund the buyout of Fedrigoni, an Italian specialty paper manufacturer, as well as to finance the acquisition of Istanbul-based self-adhesive PVC manufacturer Unifol, and to repay debt.

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