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Packaging Dynamics Plans to Raise $400 Million: New Issue Alert

Packaging Dynamics Corp., the maker of industrial and specialty papers, plans to raise $400 million in a sale of senior secured notes as the high-yield default rate was projected to be as little as 1.5 percent this year.

The company plans to sell debt maturing in 2016 to repay its senior secured credit line and finance a cash dividend to shareholders, according to a statement distributed by PRNewswire. The notes carry a B3 rating from Moody’s Investors Service and a B from Standard & Poor’s.