Rexam Healthcare sets first-, second-lien term loan talk with launch

By Sara Rosenberg

New York, March 25 - Rexam Healthcare released price talk on its $380 million seven-year first-lien covenant-light term loan and $175 million eight-year second-lien covenant-light term loan with its bank meeting on Tuesday, according to a market source.

The first-lien term loan amount, of which $280 million will be in U.S. dollars and $100 million will be in the euro equivalent, is talked at Libor/Euribor plus 375 basis points to 400 bps with a 1% floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 775 bps to 800 bps with a 1% Libor floor and a discount of 981/2, the source said.

In addition, 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 $620 million credit facility also includes a $65 million revolver.

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.

Commitments are due on April 8.

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 health care industry.

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