Mold-Rite lifts first-lien loan to $420 million, tightens pricing

By Sara Rosenberg

New York, Sept. 29 – Mold-Rite Plastics LLC (Valcour Packaging LLC) upsized its seven-year covenant-lite first-lien term loan (B2/B-) to $420 million from $400 million and reduced pricing to Libor plus 375 basis points from Libor plus 400 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was revised to 99.5 from 99, the source said.

The first-lien term loan still has a 0.5% Libor floor and 101 soft call protection for six months.

The company is also in market with a $160 million eight-year covenant-lite second-lien term loan (Caa2/CCC) talked at Libor plus 675 bps to 700 bps with a 0.5% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

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

Commitments continue 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 is being reduced as a result of the first-lien term loan upsizing.

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

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