Exopack Holding adjusts term loan B tranching, lowers pricing

By Sara Rosenberg

New York, Oct. 23 - Exopack Holding Corp. revised its U.S. and euro term loan B sizes, while keeping the total amount of 51/2-year term loan B debt (B) at roughly $675 million, and updated pricing on the tranches, according to a market source.

The U.S. term loan is now sized at $435 million, down from $475 million, and the euro term loan is now at €175 million, up from €150 million, the source said.

Pricing on the U.S. term loan is Libor plus 425 basis points, versus earlier talk of Libor plus 450 bps to 475 bps, and the euro loan is priced at Euribor plus 475 bps, which means it came 50 bps wide of the U.S. loan as initially expected, but down from where it would have been if the U.S. term loan had priced in line with earlier talk.

Also, the original issue discount on both term B tranches was revised to 99½ from 99, the source said.

The term loans still have a 1% floor and 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected to go out on Thursday.

Goldman Sachs & Co. and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds from the term loans and $325 million of notes will be used to refinance existing debt.

Earlier in syndication, the total term loan amount was reduced from $750 million as the bond offering was upsized from $250 million.

Exopack is a Chicago-based manufacturer of plastic packaging products.

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