Novolex launches $2.63 billion term loan at SOFR plus 425 bps

By Sara Rosenberg

New York, March 21 – Novolex Holdings LLC (Clydesdale Acquisition Holdings Inc.) was scheduled to hold a lender call at 1 p.m. ET on Monday to launch a $2.63 billion seven-year sustainability-linked first-lien term loan that is talked at SOFR+10 basis points CSA plus 425 bps with a 0.5% floor and an original issue discount of 96, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Expected term loan ratings are B2/B.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets, Wells Fargo Securities LLC, BNP Paribas Securities Corp., MUFG, HSBC Securities (USA) Inc., BMO Capital Markets, Mizuho and Macquarie Capital (USA) Inc. are the arrangers on the deal.

Commitments are due at 5 p.m. ET on March 30, the source added.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management from Carlyle. Carlyle will retain a minority stake in the company.

Closing is expected in the second quarter, subject to regulatory approvals.

Novolex is a Hartsville, S.C.-based manufacturer of packaging products for the foodservice, delivery and carryout, food processor and industrial markets.

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