Pixelle firms $507 million term loan at SOFR plus 650 bps

By Sara Rosenberg

New York, May 10 – Pixelle (Spectrum Group Buyer Inc.) set pricing on its $507 million first-lien term loan B at SOFR plus 650 basis points, the high end of the SOFR plus 625 bps to 650 bps talk, according to a market source.

Also, the floor on the term loan was increased to 0.75% from 0.5%, the call protection was changed to a 101 hard call for one year from a 101 soft call for a year and the maturity was shortened to six years from seven years, the source said.

The term loan still has an original issue discount of 98.

The company’s $567 million of credit facilities (B1/B) also include a $60 million revolver.

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

Commitments were scheduled to be due at 5 p.m. ET on Tuesday, accelerated from 5 p.m. ET on Wednesday, 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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