Cellu Tissue $160 million six-year notes talked 93/4-10%, to price Friday

By Paul A. Harris

St. Louis, March 4 - Price talk of 9¾% to 10% was heard Thursday on Cellu Tissue Holdings' proposed $160 million offering of six-year senior secured notes (B2/B), according to a market source.

The deal is expected to price on Friday afternoon.

JP Morgan is the bookrunner on the Rule 144A offering.

The notes come with three years of call protection and will have a first lien on all assets except accounts receivable and inventory, which will have a second lien.

Proceeds will be used to repay bank debt and fund a dividend payment.

The Hartford, Conn.-based company manufactures specialty tissues and machine-glazed paper products.

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