Reynolds Group launches U.S. and euro term loans to investors

By Sara Rosenberg

New York, Nov. 14 - Reynolds Group Holdings Inc. held a call at 11 a.m. ET on Thursday to launch a $2,213,000,000 term loan due December 2018 and a €297 million term loan due December 2018, according to a market source.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal, and HSBC Securities (USA) Inc. is a co-arranger.

Price talk on the U.S. term loan is Libor plus 300 basis points to 325 bps with a 1% Libor floor and a par offer price, and talk on the euro term loan is Euribor plus 325 bps to 350 bps with a 1% floor and a par offer price, the source said.

Both term loans have 101 soft call protection for six months.

Proceeds will be used to refinance an existing U.S. term loan due October 2018 that is priced at Libor plus 375 bps with a 1% Libor floor and an existing euro term loan due October 2018 that is priced at Euribor plus 400 bps with a 1% floor.

Commitments are due at 5 p.m. ET on Nov. 21, the source added.

In addition, the company is seeking a repricing of its $120 million and €80 million senior secured revolving credit facilities, and an extension of their maturities to five years from the amendment effective date, a news release said.

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

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