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 Monday.
“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 Friday.
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 last year.
Spokespersons for Credit Suisse and Apollo Global Management did not immediately respond to requests for comment. (Reporting by Robert Smith, Editing by Helene Durand)