Reynolds Group to launch $2.33 billion term loan E on Monday

By Sara Rosenberg

New York, Jan. 28 - Reynolds Group Holdings Ltd. is scheduled to hold a call on Monday for prospective lenders to launch a $2.325 billion seven-year term loan E, according to a market source.

Price talk on the term loan E is Libor plus 350 basis points with a 1.5% Libor floor, the source said.

In addition, the company will also be launching a €250 million seven-year term loan B that is talked at Euribor plus 375 bps with a 1.5% floor.

Commitments are due on Feb. 4.

Credit Suisse is the left lead bank on the deal.

Proceeds will be used to refinance the company's existing senior secured credit facility.

Recently, the company priced a $2 billion bond offering (after being upsized from $1 billion), with proceeds earmarked for the repayment of its term loan D.

The bonds consist of $1 billion of senior secured notes that priced at par to yield 6 7/8% and $1 billion of senior unsecured notes that priced at par to yield 8¼%.

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

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