Ranpak to launch $600 million credit facility on Tuesday afternoon

By Sara Rosenberg

New York, Sept. 8 – Ranpak Holdings Inc. is scheduled to hold a bank meeting at 3 p.m. ET in New York on Tuesday to launch a $600 million equivalent credit facility, according to a market source.

Credit Suisse Securities (USA) LLC and Macquarie Capital are the lead banks on the deal.

The facility consists of a $30 million five-year revolver, a $400 million equivalent seven-year first-lien covenant-light term loan split between a $231 million tranche and a roughly €130 million tranche and a $170 million eight-year second-lien covenant-light term loan, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Commitments are due on Sept. 23, the source added.

Proceeds will be used to help fund the buyout of the company by Rhone Capital LLC from Odyssey Investment Partners LLC.

Closing is expected in the third quarter, subject to customary conditions, including regulatory approvals.

Ranpak is a Concord Township, Ohio-based manufacturer of paper-based systems for protective packaging needs.

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