Reynolds Group better with amendment request; Lattice Semiconductor, Vogue release talk

By Sara Rosenberg

New York, Feb. 18 –Reynolds Group Holdings Inc.’s U.S. term loan was a bit stronger in the secondary market on Wednesday as the company launched an amendment that would result in higher pricing in return for waiving a paydown.

Switching to the primary market, Lattice Semiconductor Corp. and Vogue International disclosed price talk with launch, and National Mentor Holdings Inc. (Civitas Solutions Inc.) joined this week’s calendar.

Reynolds Group’s U.S. term loan moved up in trading to par bid, par ½ offered from 99 7/8 bid, par 3/8 offered with an amendment proposal that was launched with a morning call, according to one trader. A second trader had the loan at par bid, par 3/8 offered, up on the bid side from 99 7/8, but unchanged on the offer side.

Under the proposal, the company asked senior secured term loan lenders to waive their right to be prepaid with a pro rata portion of the proceeds from the sale of SIG Combibloc to Onex Corp., and from the sale of its Evergreen and/or Closures businesses if definitive agreements are signed prior to March 31, 2016.

Consenting lenders are being offered the right to exchange their current term loan debt into new term loans due Dec. 1, 2018 priced at Libor/Euribor plus 350 basis points with a 1% floor, a market source said.

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