Pretium Packaging sets first- and second-lien term loan price talk

By Sara Rosenberg

New York, Oct. 19 – Pretium Packaging (Pretium Pkg Holdings Inc.) released price talk on its $530 million seven-year covenant-lite first-lien term loan (B2/B) and $170 million eight-year covenant-lite second-lien term loan (Caa2/CCC+) in connection with its lender call on Monday, according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points to 425 bps with a 0.75% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 0.75% Libor floor and a discount of 98.5, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are the lead arrangers on the $700 million of term loans.

Commitments are due at 5 p.m. ET on Oct. 28.

Proceeds will be used to refinance existing debt and fund a shareholder distribution.

Pretium is a Chesterfield, Mo.-based designer and manufacturer of rigid plastic packaging solutions for specialized applications.

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