Exopack lowers pricing on $350 million loan to allow consolidation

By Toni Weeks

San Luis Obispo, Calif., May 15 - Exopack Holdings Corp. amended its credit facilities to clear the way for consolidation with Sun Capital Partner Inc.'s other flexible and rigid packaging portfolio businesses, including Kobusch, Britton, Paragon and Paccor.

According to an 8-K filing with the Securities and Exchange Commission, pricing on the company's $350 million senior secured term loan was lowered to Libor plus 375 basis points with a 1.25% Libor floor from Libor plus 500 bps with a 1.5% Libor floor. If the loan is repaid or repriced within one year, there is a prepayment premium of 1%.

Bank of America NA is the administrative assistant for the facility.

The company also amended its ABL facility to allow for the consolidation. General Electric Capital Corp. is the U.S. agent for the ABL facility.

As previously reported, the amendments will enable the company to participate in supplier financing at investment-grade borrowing rates. Bank of America consented generally to supplier financing arrangements, whereas GE will consent separately to each supplier financing program on a case-by-case bases. GE has already consented to Exopack's execution of a supplier financing program with respect to receivables of a specific customer.

Exopack is in the process of implementing the technical steps of the consolidation and expect those steps to be completed "in the next few weeks," the filing noted.

Chicago-based Exopack is a full-service paper and plastic flexible packaging products manufacturer.

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