LONDON, Oct 7 (IFR) - Verallia is looking to price its PIK
toggle bond next week according to investors after pushback from
the buyside on the deal's aggressive structure prevented the
issuer from wrapping up the trade this week.
The French glass bottle maker announced the 500m 5NC1 PIK
toggle trade on Tuesday with investor meetings scheduled to
finish Friday, with "pricing thereafter". This usually suggests
that the deal will price that day.
But there were no public updates on the transaction's
progress on Friday, and two investors said lead-left bookrunner
Credit Suisse was now guiding them for a further announcement on
"I've heard there could be structural tweaks as well," said
one of the investors.
Several investors said leads began marketing the deal at an
eight-handle yield, but that this had backed up to high-9% on
The trade has faced resistance from the buyside because it
is handing a 490m dividend to shareholders, little over a year
after Apollo Global Management gained control of the business
through a June 2015 LBO deal.
The PIK follows a bond and loan deal in June that had 230m
earmarked for reimbursing shareholders, meaning the owners will
take out more than the 578m of equity they initially put in
Spokespersons for Credit Suisse and Apollo Global Management
did not immediately respond to requests for comment.
(Reporting by Robert Smith, Editing by Helene Durand)