Reynolds Group upsizes incremental first-lien loan to $1.35 billion

By Sara Rosenberg

New York, Sept. 28 – Reynolds Group Holdings Inc. increased the size of its fungible incremental first-lien term loan due February 2023 to $1.35 billion from $500 million, according to a market source.

Pricing on the incremental term loan is Libor plus 325 basis points, with a step-down to Libor plus 300 bps subject to a B2 corporate rating, and a 1% Libor floor, which matches existing term loan pricing.

The original issue discount on the incremental term loan is still 99.75, and there is still 101 soft call protection through February 2017.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are the leads on the deal.

Recommitments were set to be due at 5 p.m. ET on Wednesday and allocations are targeted for Thursday, the source said.

Proceeds will be used to repay 5 5/8% senior notes due 2016 and 9 7/8% senior notes due 2019, and due to the upsizing, up to $500 million 8¼% senior notes due 2021 and up to $350 million 6 7/8% senior secured notes due 2021.

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

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