Crown Holdings sets London and New York bank meetings for Jan. 8 week

By Sara Rosenberg

New York, Jan. 5 – Crown Holdings Inc. is scheduled to hold a bank meeting in London on Tuesday and a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch its U.S. and euro senior secured credit facilities, according to a market source.

As previously reported, the company has received a commitment for an up to $4 billion seven-year term loan B, but it is anticipated that the financing will actually be split between U.S. and euro loans and bonds.

Citigroup Global Markets Inc. is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of Signode Industrial Group Holdings (Bermuda) Ltd. from the Carlyle Group in a cash transaction valued at $3.91 billion, subject to customary closing adjustments.

Upon announcing the transaction last month, company officials said in a conference call that the debt is expected to have a blended interest rate of around 3½%.

Pro forma net leverage will be 5.1 times as of Sept. 30, 2017 and total net leverage will be 5.3 times as of Sept. 30, 2017. Net leverage is anticipated to decrease by 0.5 times per year.

Closing is expected this quarter, subject to review by various competition authorities.

Crown Holdings is a Philadelphia-based provider of consumer packaging. Signode is a Glenview, Ill.-based provider of transit packaging systems and solutions.

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