HCP Global withdraws $380 million credit facility from market

By Sara Rosenberg

New York, Aug. 8 – HCP Global Ltd. pulled its $380 million senior secured credit facility from the primary market due to unfavorable market conditions, according to a market source.

The facility consisted of a $50 million five-year revolver (B2/B), a $230 million seven-year first-lien covenant-light term loan (B2/B) and a $100 million eight-year second-lien covenant-light term loan (B3/CCC+).

Price talk on the first-lien term loan had been 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 had been Libor plus 725 bps to 750 bps with a 1% Libor floor and a discount of 99.

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

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

Proceeds were going to be used to refinance existing debt and fund a distribution to the sponsor, TPG.

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

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