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TRLPC-SIG Combibloc adjusts buyout financing
February 2, 2015 / 3:51 PM / 3 years ago

TRLPC-SIG Combibloc adjusts buyout financing

LONDON, Feb 2 (Reuters) - A leveraged loan forming part of a wider debt financing backing the buyout of Swiss packaging group SIG Combibloc has increased to cover a reduced bond tranche and movements in foreign exchange, banking sources said on Monday.

A seven-year dual-denominated term loan now totals 2.134 billion euros($2.42 billion) from 1.965 billion euros, while a high yield bond has been reduced to 675 million euros from 700 million euros, the sources said.

Pricing has tightened on the term loan following strong demand so both a $1.225 billion tranche and a 1.05 billion euro tranche will pay 425 basis points (bp) over Libor/Euribor at 99.5 OID from initial guidance of 450bp-475bp from 99 OID. A one percent Libor/Euribor floor, which guarantees a minimum return for investors, remains unchanged. 101 soft call has been extended to 12 months from six months.

A ticking fee has also been made more attractive and will pay 100 percent of the margin and floor after 31 days.

Previously it paid 50 percent of the margin between 31 to 60 days and the full margin thereafter.

Leverage on the deal has increased to 5 times through the senior and 6.7 times in total from 4.6 times through the senior and 6.3 times in total.

Final commitments on the dollar term loan are due 5pm New York time on February 2 and 12pm UK time on February 3.

Corporate ratings are B2/B+, senior secured ratings are B1/B+ with a 3 S&P recovery rating and senior unsecured ratings are Caa1/B- with a 6 S&P recovery rating.

Barclays, Bank of America, Goldman Sachs, Nomura, Royal Bank of Canada, Credit Agricole, Mizuho, Royal Bank of Scotland, UniCredit and Rabobank are joint lead arrangers.

Canadian buyout firm Onex Corp announced it would buy SIG on November 24.

SIG, the world’s second largest maker of drink cartons, manufactures aseptic carton packaging that allows juices, milk, soups and sauces to be stored for a long period of time without refrigeration. The company has around 5,100 employees in 40 countries. ($1 = 0.8808 euros) ($1 = 0.8804 euros) (Editing by Christopher Mangham)

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