Charter NEX lifts term loan to $675 million, tightens pricing

By Sara Rosenberg

New York, May 2 – Charter NEX US Inc. upsized its non-fungible incremental first-lien term loan due May 16, 2024 to $675 million from $660 million and reduced pricing to Libor plus 350 basis points from Libor plus 375 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 99.5 from 99, the source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

The company is also getting a $25 million incremental revolving credit facility due May 16, 2022.

Jefferies LLC and Nomura are the lead arrangers on the deal.

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used to fund the merger of Charter NEX and Next Generation Films.

Other funds for the transaction will come from $35 million of privately placed notes, downsized from $50 million with the term loan upsizing.

Leonard Green and Oak Hill are the sponsors.

Charter NEX is a manufacturer of highly engineered specialty films, focused on the stable food and medical end-markets.

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