Pretium Packaging updates first- and second-lien term loan pricing

By Sara Rosenberg

New York, Sept. 22 – Pretium Packaging (Pretium PKG Holdings Inc.) lowered pricing on its $350 million eight-year second-lien term loan to Libor plus 675 basis points from Libor plus 725 bps, according to a market source.

Pricing on the $1.25 billion seven-year first-lien term loan remained at Libor plus 400 basis points with a 0.5% Libor floor, but a 25 step-down at 4.5x first-lien net leverage was added.

Furthermore, the company changed the original issue discount on its first-lien term loan to 99.5 from 99 and firmed the discount on its second-lien term loan at 99, the tight end of the 98.5 to 99 talk, the source said.

The first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has a 0.5% Libor floor and call protection of 102 in year one and 101 in year two.

Earlier in syndication, the first-lien term loan was upsized from $1.215 billion and the second-lien term loan was downsized from $365 million.

The company’s $1.7 billion of credit facilities also include a $100 million ABL revolver.

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

Recommitments were scheduled to be due at 12:30 p.m. ET on Wednesday, 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.

© 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.