The award for the deal of the week must go to Reynolds Group, the company wholly-owned by New Zealand's richest man, Graeme Hart. Reynolds Group issued US$1.0 billion of eight-year bonds in the US s144A market, at what appears to be a very reasonable 509 basis points over US Treasuries.The spread appears to be very reasonable because the bonds are rated just 'B-' by Standard & Poor's. The rating reflects issuance via subsidiary Reynolds Group Issuer (Lux) SA (Reynolds Group is rated B+) and subordination to the existing senior secured facilities and senior secured notes. Moreover, a recovery rating of 6 was assigned, which indicates an expected recovery rate of only 0 to 10 per cent should an event of default occur.S&P notes that the multi-jurisdictional nature of Reynolds Group, security sharing arrangements, and a complex structure could complicate any insolvency and enforcement proceedings. S&P believes, however, that cross guarantees, shared first-lien security, and inter-creditor deeds could mitigate these complications. Proceeds from the bond issue, along with a US$800 million term loan, will be used to acquire Evergreen Packaging Inc., and Whakatane Paper Mill.Staying in New Zealand, the Warehouse Group completed its NZ$100 million, five-year, retail bond issue on Wednesday. The coupon was set at 7.37 per cent (swap plus 215 bps) and the bonds commenced trading on the NZDX on Thursday.