Ivex Packaging Corp., a plastic-and paper-based flexible packaging manufacturer, has filed a $125 million initial public offering with the Securities and Exchange Commission.
The shares will be issued and sold by the company, Acadia Partners and other related investors. Ivex plans to use the proceeds to refinance or retire all or a portion of its outstanding debt. The proceeds will be used with loans under a new $475 million credit facility.
The company had canceled a previous planned stock offering in December 1995. That IPO was slated to raise $54.6 million.
The Lincolnshire, Ill., company makes oriented polystyrene sheet and film and thermoformed PS packaging. It reported sales of $264 million and profit of $2.7 million for the first six months of the year, up from $210.4 million and $1.7 million, respectively, for the first six months of 1996. Ivex reported 1996 sales of $485 million. It has about 3,000 employees.
Its consumer packaging products unit includes plastic containers and microwaveable packaging. The protective packaging unit serves the medical and electronics industries.
Merrill Lynch & Co. will be the lead manager of the offering with Lehman Bros. and Salomon Bros. acting as co-managers.
Standard & Poor's Corp. announced that successful completion of the IPO could result in a modest upgrade for Ivex's corporate credit and long-term ratings. Ivex received a corporation credit rating of B+ and a senior secured debt rating of B-.
Ivex was third in Plastics News' 1997 ranking of North American thermoformers, with relevant sales of $160 million.