Ranpak sets first- and second-lien term loan price talk with launch

By Sara Rosenberg

New York, Sept. 9 – Ranpak Holdings Inc. disclosed price talk on its $231 million seven-year first-lien covenant-light term loan, roughly €130 million seven-year first-lien covenant-light term loan and $170 million eight-year second-lien covenant-light term loan that launched with a bank meeting on Tuesday, according to a market source.

The U.S. first-lien term loan is talked at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, the euro first-lien term loan is talked at Euribor plus 425 bps with a 1% floor and a discount of 99, and the second-lien term loan is talked at Libor plus 750 bps with a 1% Libor floor and a discount of 99, the source remarked.

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.

The company’s $600 million equivalent credit facility also provides for a $30 million five-year revolver.

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

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

Commitments are due on Sept. 23.

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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