SCA, a leading producer of absorbent hygiene products and packaging solutions, successfully concluded a 144A transaction in the US credit market in July. The loan, totalling $450m, has a 12-year term and is part of SCA’s ongoing refinancing of maturing loans.
The deal marked the company’s successful return to the US capital markets for the first time in 10 years, taking advantage of attractive borrowing costs versus Libor in the 12-year maturity bucket.
The transaction was announced, launched and priced the same day, limiting marketing efforts to a global investors conference call led by the group treasurer. The order book was driven by top-tier US insurers and investment managers. Twenty-one high-quality, buy-and-hold investorsparticipated in the deal; 20 of the 21 primary purchasers were not current holders of the SCA 6.75% due in 2003.
The transaction was priced at 105 basis points over Treasuries, at the tighter end of price talk.
