Pixelle to launch $567 million credit facilities on Wednesday

By Sara Rosenberg

New York, April 26 – Pixelle (Spectrum Group Buyer Inc.) is scheduled to hold a lender call at 10 a.m. ET on Wednesday to launch $567 million of credit facilities, according to a market source.

Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Barclays, BMO Capital Markets and KKR Capital Markets are the lead arrangers on the deal.

The facilities consist of a $60 million revolver and a $507 million seven-year first-lien term loan B, the source said.

Price talk on the term loan is SOFR plus 625 basis points to 650 bps with a 0.5% floor and an original issue discount of 98, the source continued.

The term loan has 101 soft call protection for one year.

Commitments are due at 5 p.m. ET on May 11, the source added.

Proceeds will be used to help fund the buyout of the company by H.I.G. Capital from Lindsay Goldberg.

Closing is expected this quarter, subject to customary conditions, including regulatory approvals.

Pixelle is a Spring Grove, Pa.-based manufacturer of fiber-based specialty products for label technology, food packaging, and other commercial and industrial end uses.

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