HCP Global reveals structure, talk on $380 million credit facility

By Sara Rosenberg

New York, July 29 – HCP Global Ltd. disclosed tranching and price talk on its $380 million senior secured credit facility in connection with its bank meeting on Tuesday, according to a market source.

The facility consists of a $50 million five-year revolver, a $230 million seven-year first-lien covenant-light term loan and a $100 million eight-year second-lien covenant-light term loan, the source said.

Price talk on the first-lien term loan is Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 99, the source continued.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Commitments are due on Aug. 7.

Citigroup Global Markets Inc., Bank of America Merrill Lynch and BNP Paribas Securities Corp. are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a distribution to the sponsor, TPG, the source added.

HCP Global is a Shanghai-based global packaging company for the cosmetics industry.

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