Mold-Rite firms $160 million second-lien loan at Libor plus 700 bps

By Sara Rosenberg

New York, Sept. 30 – Mold-Rite Plastics LLC (Valcour Packaging LLC) finalized pricing on its $160 million eight-year covenant-lite second-lien term loan (Caa2/CCC) at Libor plus 700 basis points, the high end of the Libor plus 675 bps to 700 bps talk, according to a market source.

Also, the company added a quarterly lender calls requirement to its second-lien term loan and $420 million seven-year covenant-lite first-lien term loan (B2/B-), removed from the asset sale sweep all step-downs and the corresponding restricted payment basket for dividends made with retained asset sale proceeds, and reduced the look-forward period to 24 months for pro forma synergies and cost savings addback, the source said.

The second-lien term loan still has a 0.5% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Pricing on the first-lien term loan is Libor plus 375 bps with a 0.5% Libor floor and an original issue discount of 99.5.

Included in the first-lien term loan is 101 soft call protection for six months.

Previously in syndication, the first-lien term loan was upsized from $400 million, pricing was reduced from Libor plus 400 bps and the discount was revised from 99.

Deutsche Bank Securities Inc. is the left lead bookrunner on the deal.

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used to help fund the buyout of the company by Clearlake Capital Group LP from Irving Place Capital.

The equity contribution for the transaction was reduced as a result of the recent first-lien term loan upsizing.

Mold-Rite is a Plattsburgh, N.Y.-based manufacturer of packaging components.

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