Berry Global, Horizon Therapeutics term loans free to trade atop issue prices

By Sara Rosenberg

New York, Dec. 16 – Berry Global Group Inc.’s term loan Y made its way into the secondary market on Monday and was seen trading above its original issue discount, and Horizon Therapeutics USA Inc.’s term loan freed up as well.

Berry Global breaks

Berry Global Group’s $4.25 billion term loan Y (Ba2/BBB-) due July 2026 freed to trade on Monday, with levels quoted at par 3/8 bid, par ¾ offered, according to a market source.

Pricing on the term loan Y is Libor plus 200 basis points with a 0% Libor floor and it was sold at an original issue discount of 99.875. The loan has 101 soft call protection for six months.

During syndication, the term loan Y was upsized from $3.85 billion, pricing was lowered from Libor plus 225 bps, a pricing step-down at 0.5x inside closing date total net leverage was removed and the issue price was revised from par.

Proceeds will be used to refinance/reprice an existing $4.25 billion term loan U that is priced at Libor plus 250 bps.

Berry lead banks

Goldman Sachs Bank USA, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Barclays, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, BofA Securities, Inc., Wells Fargo Securities LLC and Morgan Stanley Senior Funding Inc. are Berry Global’s term loan Y.

Initially, Berry Global was going to pay down a portion of the term loan U borrowings with some of the proceeds from a €1.075 billion dual-tranche bond issuance, but opted instead to use all of the notes proceeds to fully repay its existing €1.075 billion term loan V priced at Euribor plus 250 bps.

Prior to the decision to repay its term loan V, the company was seeking a $776 million equivalent term loan Z due July 2026 to help reprice/refinance the term loan V, and talk on the term loan Z was Euribor plus 225 bps with a step-down at 0.5x inside closing date total net leverage, a 0% floor, a par issue price and 101 soft call protection for six months.

Berry is an Evansville, Ind.-based manufacturer and marketer of plastic packaging products, plastic film products, specialty adhesives and coated products.

Horizon hits secondary

Horizon Therapeutics’ $418 million senior secured covenant-lite term loan B (Ba1/BB+) due May 22, 2026 also began trading, with levels quoted at par ½ bid, 101 offered, a market source remarked.

Pricing on the term loan B is Libor plus 225 bps with a 25 bps step-down when total net leverage is 2x, with cash netting capped at $50 million, and a 0% Libor floor. The debt was issued at par and has 101 soft call protection for six months.

Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are leading the deal that will be used to reprice an existing term loan B down from Libor plus 250 bps.

Closing is expected on Wednesday.

Horizon Therapeutics is a Dublin-based biopharmaceutical company.

© 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.