Reynolds Group launches $750 million term loan at Libor plus 425 bps

By Sara Rosenberg

New York, April 20 - Reynolds Group Holdings Ltd. launched its $750 million term loan on Tuesday with price talk of Libor plus 425 basis points with a 1.5% Libor floor and an original issue discount of 991/2, according to a market source.

Credit Suisse is the lead bank on the deal.

Proceeds from the term loan, along with $1 billion of unsecured notes, will be used to fund the acquisitions of the Evergreen Packaging group of companies and the Whakatane Mill from Carter Holt Harvey Ltd.

Closing on the acquisitions is expected to take place in May.

The Evergreen Packaging group of companies manufacture fresh carton packaging systems for beverage products, primarily serving the juice and milk end markets, and the Whakatane Mill is a paper mill located in New Zealand.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

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