Hilex cuts B loan to $135 million, ups spread to Libor plus 900 bps

By Sara Rosenberg

New York, Oct. 21 - Hilex Poly Co. downsized its term loan B (B3/B) to $135 million from $160 million and increased pricing to Libor plus 900 basis points from Libor plus 700 bps, according to a market source.

In addition, the maturity of the term loan B was shortened to five years from six years, the source said.

As before, the loan has a 2% Libor floor and is being offered at an original issue discount of 98.

Amortization is 10% per annum.

Commitments are due at noon ET on Wednesday.

Deutsche Bank and GE Capital are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Hilex Poly is a Hartsville, S.C.-based producer of recycled content plastic bags and recycler of plastic bags and film.

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