Riverwood likely to bring additional B loan to market in June to repay outstanding debt

By Sara Rosenberg

New York, May 8 - Riverwood Holding Inc. is anticipated to bring another new $250 million term loan B to the market in June, according to a syndicate source. The B loan is an add-on under the Atlanta, Ga. paperboard and packaging company's existing credit facility. Deutsche Bank and JPMorgan Chase Bank are expected to lead the offering.

Proceeds from the loan combined with proceeds from an initial public offering of $350 million and an anticipated sale of public notes will be used to repay outstanding senior notes and senior subordinated notes and a portion of outstanding debt under the revolving credit facility, according to a company press release.

The proposed addition to the credit facility will be the second one done by the company. In April, Riverwood International Corp., a subsidiary of Riverwood Holding, added a $250 million senior secured term B to the existing credit facility, which matures on March 31, 2007, via Deutsche Bank and JPMorgan Chase Bank. The interest rate on the loan is Libor plus 250 basis points.

According to the syndicate source, the interest rate on the newest proposed add-on is expected to be the same as the interest rate on the B loan that was done in April.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.