Coveris Holdings, a portfolio company of funds advised by Sun Capital Partners, proposed amendments to its existing senior secured term loan, consisting of a $342.2 million U.S. dollar senior secured tranche, which is currently priced at LIBOR+3.50% (with a LIBOR floor of 1.00%), and a €244.7 million ($269 million) euro-denominated tranche, which is currently priced at EURIBOR+3.50% (with a EURIBOR floor of 1.00%).
Goldman Sachs Bank USA, Credit Suisse International and J.P. Morgan are the joint lead arrangers for the proposed amendments and the incremental term loan.
In connection with the proposed amendments, the company intends to upsize the existing tranches by way of a proposed incremental term loan in the aggregate amount of $350.0 million (equivalent). The incremental term loan, which is expected to comprise both a U.S. dollar-denominated tranche and a euro-denominated tranche, will mature on May 8, 2019, the same date as the existing term loan.
The group intends to use the proceeds from the incremental term loan to redeem all of Coveris Holding’s outstanding 10.00% senior notes due 2018, to repay a portion of the amounts outstanding under the North American and UK asset-backed revolving credit facilities to which certain members of the group are party and to pay any fees, premiums and expenses related to the redemption and the repayment. The redemption and repayment are contingent upon the closing of the incremental term loan and the proposed amendments.