Pretium Packaging revises first- and second-lien term loan sizes

By Sara Rosenberg

New York, Sept. 20 – Pretium Packaging (Pretium PKG Holdings Inc.) upsized its seven-year first-lien term loan to $1.25 billion from $1.215 billion and downsized its eight-year second-lien term loan to $350 million from $365 million, according to a market source.

Price talk on the first-lien term loan remained at Libor plus 400 basis points with a 0.5% Libor floor and an original issue discount of 99, and talk on the second-lien term loan remained at Libor plus 725 bps with a 0.5% Libor floor and a discount of 98.5 to 99.

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.

The company’s now $1.7 billion of credit facilities, up from $1.68 billion, also include a $100 million ABL revolver.

Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. are the lead arrangers on the deal.

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

Proceeds will be used to fund the acquisition of Alpha Consolidated Holdings Inc. (Alpha Packaging) from Irving Place Capital and to refinance existing debt.

Pretium, a Clearlake Capital Group LP portfolio company, is a Chesterfield, Mo.-based designer and manufacturer of rigid plastic packaging solutions for specialized applications. Alpha is a St. Louis-based provider of sustainable packaging solutions.

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