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Anchor Glass Container releases details on proposed revolver, term B loan and DIP
By Sara Rosenberg
New York, March 26 - Anchor Glass Container Corp. released new details on its proposed $100 million revolving credit facility, $20 million tranche B term loan and $100 million debtor-in-possession facility in a company presentation.
The $100 million revolver is expected to basically be the same as the existing credit facility, according to the document. Bank of America is the lead bank on the loan and Congress and Cerberus Capital Management LP are to be part of the syndicate, the document said. The company is still involved in negotiations on final terms and documentation for the revolver, the document added.
The $20 million tranche B senior secured term loan is due on March 31, 2005 and is available in a single drawdown at closing. An interest rate of 14% per annum has been set for the facility. There will be a closing fee of 2% of the loan commitment amount, payable on the closing date. Security for the term loan is a second priority lien on all of the company's property, except for assets and property securing the first mortgage notes, the document said. A prepayment fee of 1.5% of principal paid is mandatory if the company pays off the debt within the first 18 months.
Subject to approval by the U.S. Bankruptcy Court, Anchor Glass Container will also receive a $100 million debtor-in-possession credit facility, with $15 million available upon filing and the rest of the balance available after 20 days. According to the company document, closing on the DIP is anticipated for March 28, 2002. The loan is to be provided by Bank of America and Cerberus Capital Management. The loan will have an interest rate of Libor plus 300 basis points.
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