Citadel Plastics sets pricing on $400 million of term loans

By Paul A. Harris

Portland, Ore., Oct. 17 – Citadel Plastics Holdings Inc. set pricing on $400 million of term loans, according to a market source.

A $300 million six-year covenant-lite term loan B (B2/BB-) is talked with a 400 basis points to 425 bps spread to Libor at 99. It features a 1% Libor floor and 101 soft call protection for six months.

A $100 million second-lien lien loan (Caa1/B-) is talked with an 800 bps spread to Libor at 99. It features a 1% Libor floor and hard calls at 102, declining to 101.

GE Capital Markets and KeyBanc Capital Markets are the leads on the deal.

The $430 million credit facility also features a $30 million six-year revolver, which has a springing total net leverage covenant.

Proceeds will be used to refinance existing debt and finance an acquisition.

As part of the transaction, the sponsors, HGGC and Charlesbank Capital, will be converting about $26 million of subordinated debt to contributed equity, the source added.

Citadel Plastics is a Chicago-based provider of plastic composite compounds.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.