Exopack trims term loan to $350 million, ups bonds to $235 million

By Sara Rosenberg

New York, May 23 - Exopack Holdings Corp. downsized its six-year covenant-light term loan to $350 million from $400 million and upsized its seven-year senior notes to $235 million from $225 million, according to a market source.

Also, pricing on the term loan was increased to Libor plus 500 basis points from Libor plus 450 bps, the source said.

The 1.5% Libor floor, original issue discount of 99½ and 101 soft call protection for one year were left unchanged.

The company's now $425 million credit facility, down from $475 million, also includes a $75 million five-year ABL revolver.

Commitments towards the credit facility are due at 5 p.m. ET on Tuesday, whereas before, they were due on Monday.

Bank of America Merrill Lynch and Goldman Sachs & Co. are the lead banks on the financing, with Bank of America the left lead on the credit facility and Goldman the left lead on the bonds.

Proceeds will be used to repay all outstanding borrowings under the company's existing revolver, purchase any and all of its outstanding 11¼% senior notes due 2014 and pay a dividend to stockholders.

As a result of the downsizing to the amount of financing that the company is getting, the dividend payment was reduced, the source added.

Prior to the changes, the term loan was rated B1/B and the notes were rated Caa1/CCC+.

Exopack is a Spartanburg, S.C.-based full-service paper and plastic flexible packaging products manufacturer.

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