Pixelle Specialty to launch $260 million of loans on Thursday

By Sara Rosenberg

New York, Oct. 3 – Pixelle Specialty Solutions LLC is scheduled to hold a bank meeting at 10 a.m. ET in New York on Thursday to launch $260 million of credit facilities, according to a market source.

Credit Suisse Securities (USA) LLC and Citizens Bank are the lead arrangers on the deal.

The facilities consist of a $40 million revolver and a $220 million seven-year first-lien term loan B, the source said.

The term loan B has a 1% Libor floor, 101 soft call protection for six months and a total net leverage ratio maintenance covenant.

Commitments are due at 5 p.m. ET on Oct. 18, the source added.

Proceeds will be used to help fund the acquisition of P.H. Glatfelter’s Specialty Papers Business Unit by Lindsay Goldberg for $360 million, including $320 million of cash proceeds and the assumption of about $40 million of retiree health care liabilities.

Other funds for the transaction will come from equity.

In addition, the buyer will assume around $250 million of pension liabilities relating to the Specialty Papers Business Unit employees and receive about $300 million of related assets from Glatfelter’s existing pension plan.

Closing is expected in the fourth quarter, subject to customary conditions.

Pixelle is a manufacturer of specialty paper products used in various end-markets.

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