Pretium flexes incremental to Libor plus 400 bps, cancels repricing

By Sara Rosenberg

New York, Feb. 2 – Pretium Packaging (Pretium Pkg Holdings Inc.) increased pricing on its fungible $75 million incremental covenant-lite first-lien term loan (B3/B) due Nov. 5, 2027 to Libor plus 400 basis points from talk in the range of Libor plus 325 bps to 350 bps, according to a market source.

Also, the company eliminated plans to reprice its existing $540 million covenant-lite first-lien term loan due November 2027 down from Libor plus 400 bps, the source said. The repricing was offered at par.

In addition, the call protection on the incremental term loan was changed to a 101 soft call through May 5, which matches existing call protection, from a 101 soft call for six months.

The incremental term loan still has a 0.75% Libor floor, same as the existing term loan, and original issue discount talk of 99.75.

Credit Suisse Securities (USA) LLC and KKR Capital Markets are the lead arrangers on the deal.

Commitments continue to be due at 5 p.m. ET on Wednesday, the source added.

Proceeds from the incremental term loan will be used to repay some second-lien term loan borrowings.

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

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