Reynolds Group tightens OID on $1.35 billion first-lien loan to 99.875

By Sara Rosenberg

New York, Sept. 29 – Reynolds Group Holdings Inc. modified the original issue discount on its fungible $1.35 billion incremental first-lien term loan due February 2023 to 99.875 from 99.75, according to a market source.

Pricing on the incremental term loan is Libor plus 325 basis points, with a step-down to Libor plus 300 bps subject to a B2 corporate rating, and a 1% Libor floor, which matches existing term loan pricing.

The incremental term loan has 101 soft call protection through February 2017.

Earlier in syndication, the term loan was upsized from $500 million due to strong demand.

Credit Suisse Securities (USA) LLC and HSBC Securities (USA) Inc. are the leads on the deal.

Recommitments were scheduled to be due at noon ET on Thursday, the source said.

Proceeds will be used to repay 5 5/8% senior notes due 2016 and 9 7/8% senior notes due 2019, and due to the recent upsizing, up to $500 million 8¼% senior notes due 2021 and up to $350 million 6 7/8% senior secured notes due 2021.

Reynolds Group is an Auckland, New Zealand-based manufacturer and supplier of consumer food and beverage packaging and storage products.

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