Pretium Packaging sets Thursday lender call for $1.58 billion bank loans

By Paul A. Harris

Portland, Ore., Sept. 8 – Pretium Packaging set a lender call at noon ET on Thursday to begin a syndication effort for $1.58 billion of bank loan paper, according to a market source.

The deal includes $1,215,000,000 of seven-year first lien term loan paper (expected ratings B2/B-) coming with a 400 basis points spread to Libor and a 0.5% Libor floor at 99 and six months of soft call protection at 101. The first lien portion of the deal features a $100 million ABL facility.

Pretium also seeks to syndicate a $365 million eight-year second lien term loan (expected ratings Caa2/CCC) coming with a 725 bps spread to Libor and a 0.5% Libor floor at 98.5 to 99. The second lien paper becomes callable after one year at 102.

Credit Suisse and Deutsche Bank are the arrangers.

Commitments are due at 5 p.m. ET on Sept. 21.

The borrowing entity will be Pretium PKG Holdings, Inc.

The Ballwin, Mo.-based plastic container manufacturer plans to use the proceeds to fund its acquisition of Alpha Packaging and to refinance existing debt.

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