Reynolds term loan B sized at $1.52 billion after second upsizing

By Sara Rosenberg

New York, Sept. 27 - Reynolds Group Holdings Ltd. increased its term loan B again, this time to $1.52 billion from $1.5 billion, according to a market source.

Initially, the term loan B had been sized at $1 billion.

Pricing on the term loan B is Libor plus 475 basis points with a 1.75% Libor floor and an original issue discount of 99. There is 101 soft call protection for one year.

Commitments were due Monday, and allocations are expected to go out on Tuesday.

The company's now $2.02 billion of new loans (Ba3/BB) also includes a $500 million term loan A priced at Libor plus 450 bps with a 1.75% Libor floor and a discount of 99.

Credit Suisse, HSBC and Australia and New Zealand Banking Group are the lead banks on the deal.

Proceeds from the term loans, along with notes, will be used to help fund the acquisition of Pactiv Corp.

The size of the notes offering was downsized upon the first term loan B increase.

Reynolds is a Chicago-based manufacturer and supplier of consumer food and beverage packaging and storage products. Pactiv is a Lake Forest, Ill.-based consumer and foodservice/food packaging company.

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