Citadel Plastics reworks first- and second-lien term loan sizes

By Sara Rosenberg

New York, Oct. 30 – Citadel Plastics Holdings Inc. upsized its six-year first-lien covenant-light term loan B (B2/BB-) to $320 million from $300 million and downsized its seven-year second-lien covenant-light term loan (Caa1/B-) to $80 million from $100 million, according to a market source.

Also, pricing on the first-lien term loan firmed at Libor plus 425 basis points, the wide end of the Libor plus 400 bps to 425 bps talk, the 101 soft call protection was extended to one year from six months and the 18-month MFN sunset provision was eliminated, the source said.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99.

Meanwhile, pricing on the second-lien term loan remained at Libor plus 800 bps with a 1% Libor floor and an original issue discount of 99, and there is still hard call protection of 102 in year one and 101 in year two.

The company’s $430 million credit facility also includes a $30 million six-year revolver (B2/BB-).

Recommitments are due by 5 p.m. ET on Friday, the source added.

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

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.

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

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