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Crown Holdings releases sizes on U.S. and euro loans before meetings
By Sara Rosenberg
New York, Jan. 8 – Crown Holdings Inc. will be launching a $1.25 billion term loan B (BB+) and a €750 million term loan B (BB+) at its previously announced bank meeting in London on Tuesday and bank meeting at 10:30 a.m. ET in New York on Wednesday, according to a market source.
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.
Other funds for the transaction are expected to come from bonds.
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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