Pretium shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, Oct. 29 – Pretium Packaging (Pretium Pkg Holdings Inc.) upsized its seven-year covenant-lite first-lien term loan to $540 million from $530 million and downsized its eight-year covenant-lite second-lien term loan to $160 million from $170 million, according to a market source.

Also, pricing on the first-lien term loan firmed at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and pricing on the second-lien term loan was set at Libor plus 825 bps, the high end of the Libor plus 800 bps to 825 bps talk, the source said.

In addition, the original issue discount on the first-lien term loan widened to 98.5 from 99.

The first-lien term loan still has a 0.75% Libor floor and 101 soft call protection for six months, and the second-lien term loan still has a 0.75% Libor floor, a discount of 98.5 and 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.

Recommitments were scheduled to be due at 11 a.m. ET on Thursday, the source added.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.