Prolamina/Ampac reworks first- and second-lien term loan sizes

By Sara Rosenberg

New York, Aug. 5 – Prolamina Corp./Ampac Holdings LLC (Intermediate Holdco (US)) upsized its seven-year first-lien term loan to $428 million from $400 million and downsized its eight-year second-lien term loan to $90 million from $110 million, according to a market source.

Additionally, pricing on the first-lien term loan firmed at Libor plus 400 basis points, the wide end of the Libor plus 375 bps to 400 bps talk, and pricing on the second-lien term loan was set at Libor plus 825 bps, the high end of the Libor plus 800 bps to 825 bps talk, the source said.

Also, the original issue discount on the second-lien term loan was changed to 98 from talk of 98.5 to 99.

Furthermore, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the source continued.

And, the MFN sunset provision was removed.

As before, the first-lien term loan has a 1% Libor floor and an original issue discount of 99, and the second-lien term loan has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

The company’s now $568 million credit facility, up from $560 million, provides for a $50 million five-year revolver as well.

RBC Capital Markets LLC is the bookrunner on the deal.

Allocations are expected on Thursday, the source added.

Proceeds will be used to fund the acquisition of Ampac by Wellspring Capital Management LLC and combination with Wellspring’s portfolio company Prolamina.

The combination will create a new flexible packaging company with 16 global manufacturing facilities serving over 4,900 customers.

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