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Verallia shelves plans to issue 500m PIK toggle - source
October 10, 2016 / 7:21 AM / a year ago

Verallia shelves plans to issue 500m PIK toggle - source

LONDON, Oct 10 (IFR) - Verallia has called off an attempt to issue a 500m payment-in-kind toggle bond, according to an investor, after facing pushback from the buyside.

The bond was intended to pay a 490m dividend to the French glass bottle makers shareholders. Private equity firm Apollo Global Management is Verallia’s majority owner.

“Verallia and its shareholder Apollo have decided not to pursue this opportunistic transaction under current market conditions,” a message to investors said on Monday.

The deal was originally slated to price by the end of last week, but IFR reported on Friday that lead-left bookrunner Credit Suisse told investors there would be a further announcement on the deal’s status on Monday.

Sources said that price whispers on the deal had backed up to high-9%, having begun at an eight-handle yield. (Reporting by Robert Smith, Editing by Helene Durand)

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