Rexam Healthcare to launch $620 million credit facility on Tuesday

By Sara Rosenberg

New York, March 21 - Rexam Healthcare is set to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $620 million credit facility, according to a market source.

The facility consists of a $65 million revolver, a $380 million seven-year first-lien covenant-light term loan and a $175 million eight-year second-lien covenant-light term loan, the source said.

Of the first-lien term loan amount, $280 million will be in U.S. dollars and $100 million will be in the euro equivalent.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Barclays and HSBC Securities (USA) Inc. are the lead banks on the deal, with Credit Suisse on the left of the first-lien loan and Morgan Stanley on the left of the second-lien loan.

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.

Commitments are due on April 8, the source added.

Proceeds will be used to help fund the buyout of the company by Montagu Private Equity from Rexam plc for $805 million.

Closing is expected by mid-year, subject to consultation with various European works councils and necessary regulatory approvals.

Rexam Healthcare is a manufacturer of plastic packaging for the healthcare industry.

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