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Berry Plastics notes talked at 10½%-10¾%, $25 million shifted to bank loan
By Paul A. Harris and Sara Rosenberg
St. Louis, Mo., July 15 - Price talk of 10½%-10¾% emerged Monday on Berry Plastics' offering of 10-year senior secured notes (B3/B-), according to a source.
The notes portion of the company's new financing was downsized to $250 million from $275 million, with the $25 million shifted onto the bank loan, the source added.
The company's term loan B was increased by $25 million to $330 million and interest rates were lowered by 25 basis points to Libor plus 300 basis points, according to a source who added that the move was made to reduce interest expense to the company
The bank loan is currently comprised of a $100 million six-year revolver with an interest rate of Libor plus 275 basis points, a $50 million six-year delayed draw term loan with an interest rate of Libor plus 275 basis points and a $330 million eight-year term loan B with an interest rate of Libor plus 300 basis points, the syndicate source said. There is a 50 basis points commitment fee on the revolver and a 75 basis points commitment fee on the delayed draw term loan.
JP Morgan and Goldman Sachs & Co. are the bookrunners on the notes deal. RBS Financial Markets and Credit Suisse First Boston are the co-managers.
The Rule 144A notes are non-callable for five years.
Proceeds will be used to help fund LBO by GS Capital Partners 2000 LP, including the tender of the 12½% senior secured notes due 2006, the 12¼% senior subordinated notes due 2004 and the 11% senior subordinated notes due 2007 and to repay debt.
The issuer is an Evansville, Ind. injection-mold plastic products company.
The notes are expected to price Wednesday morning.
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