In a noteworthy private equity financing transaction, Milbank, Tweed, Hadley & McCloy LLP represented the initial purchasers in a $750 million high-yield debt offering issued to help finance the buyout of Signode Industrial Group by leading private equity investor The Carlyle Group.
Milbank advised Goldman, Sachs & Co. and J.P. Morgan Securities LLC and the other initial purchasers of the 8-year notes, carrying a yield of 6.375%. The notes offering closed on April 29 and Carlyle completed its acquisition on May 1.
Earlier this year, Carlyle announced its intention to acquire Signode, formerly known as Industrial Packaging Group, from Illinois Tool Works Inc., in a buyout valued at $3.2 billion.
Signode is a global manufacturer of industrial packaging, tools and equipment. Based in Glenview, Illinois, the 100-year-old company has 88 manufacturing locations globally, which allows it to reach customers in over 60 countries.
Milbank’s deal team was led by Milbank securities partners Rod Miller and Stuart Morrissy, leveraged finance partner Lauren Hanrahan and tax partner Andrew Walker along with associates Jonathan Brown, Jessica Cunningham, Susan Yanes, Max Weiss and Erika Hauser.
“The high-yield sector has been one of the hottest parts of the securities market and a major contributor to the strong pace of private equity deals this year,” Mr. Miller said. “We’re extremely pleased to have played a key role in helping finance Carlyle’s acquisition of a crown jewel manufacturer such as Signode, which is certain to continue growing globally as a stand-alone company.”
