Libbey Glass launches $440 million term loan B at Libor plus 325 bps

By Sara Rosenberg

New York, March 26 - Libbey Glass Inc. launched with its Wednesday bank meeting a $440 million seven-year senior secured covenant-light term loan B that is talked at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Barclays and Fifth Third Securities Inc. are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on April 2, the source added.

Closing is targeted for April 9.

Proceeds will be used to refinance senior secured notes.

The company is currently tendering for up to $360 million of its 6 7/8% senior secured notes due 2020 in an offer that expires on April 8.

Following completion of the tender offer, the company intends to redeem the remaining $45 million of the notes.

The tender offer is contingent on new debt financing, the amending of, or the receipt of, any required consents under the existing amended and restated credit agreement and other customary conditions.

Libbey is a Toledo, Ohio-based manufacturer of glass tableware.

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