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

By Sara Rosenberg

New York, July 14 – Reynolds Group Holdings Inc. was scheduled to hold a lender call at 3 p.m. ET on Thursday to launch a $2,223,000,000 6.5-year term loan and a €250 million 6.5-year term loan, according to a market source.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

The U.S. term loan is talked at Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 99.5, and the euro term loan is talked at Euribor plus 375 bps to 400 bps with no floor and a discount of 99, the source said.

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

Proceeds will be used to refinance existing term loans.

Commitments are due on Wednesday, the source added.

Furthermore, the company said in a news release that it is looking to resize its revolver as a single $400 million facility and extend the maturity to five years from closing.

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

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