Chesapeake $125 million revolver, £145 million term loans to launch Wednesday

By Sara Rosenberg

New York, Aug. 8 - Chesapeake Corp. is scheduled to hold a bank meeting on Wednesday to launch its proposed $125 million revolver and £145 million of term loan debt, according to a market source.

Wachovia and Bank of America are the lead banks on the deal.

The term loan debt is divided into a £70 million funded tranche and a £75 million delayed-draw tranche, the source said.

Proceeds will be used to refinance the company's existing $250 million revolver and allow for the redemption of its 10 3/8% sterling subordinated debt in the fourth quarter.

The transaction is expected to close by early September.

Chesapeake is a Richmond, Va., supplier of specialty paperboard and plastic packaging.

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