Charter NEX lifts term loan size to $610 million, trims pricing

By Sara Rosenberg

New York, May 9 – Charter NEX US Inc. upsized its seven-year first-lien term loan to $610 million from $585 million and reduced pricing to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.

Also, the original issue discount on the term loan firmed at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $685 million in credit facilities, up from $660 million, also include a $75 million revolver.

Jefferies Finance LLC and Nomura are the lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners LP from Pamplona Capital Management.

The upsizing of the term loan resulted in a $25 million reduction in the amount of senior unsecured payment-in-kind toggle notes being used for the transaction, the source added.

Other funds for the buyout will come from equity.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

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