PPC flexes $360 million first-lien term loan to Libor plus 350 bps

By Sara Rosenberg

New York, April 10 – PPC Industries Inc. lowered pricing on its $360 million seven-year covenant-light first-lien term loan (B2) to Libor plus 350 basis points from revised talk of Libor plus 375 bps and initial talk of Libor plus 400 bps, according to a market source.

Also, the leverage-based step-down to Libor plus 350 bps that was added to the deal earlier in syndication has been removed, the source said.

The term loan still has a 1% Libor floor, an original issue discount of 99.875 and 101 soft call protection for six months.

Previously in syndication, the discount on the first-lien term loan was tightened from 99.5.

The company’s $517 million in credit facilities also include a $40 million five-year revolver (B2) and a $117 million eight-year second-lien term loan (Caa2).

Antares Capital is the lead on the deal.

Allocations are expected this week, the source added.

Proceeds will be used to help fund the acquisition of Pexco LLC.

PPC, a portfolio company of Kohlberg & Co., is a provider of highly engineered consumable specialty plastics to the medical, food and industrial markets. Pexco is a custom plastic extruder serving the medical and specialty industrial end markets. The combined entity will be based in Alpharetta, Ga.

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