Libbey Glass cuts spread on $440 million term B to Libor plus 300 bps

By Sara Rosenberg

New York, April 2 - Libbey Glass Inc. trimmed pricing on its $440 million seven-year senior secured covenant-light term loan B to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

In addition, the Libor floor was cut to 0.75% from 1% and the original issue discount was changed to 99¾ from 991/2, the source said.

The term loan still has 101 soft call protection for six months and amortization of 1% per annum.

Recommitments are due at noon ET on Thursday, the source added.

Closing is targeted for April 9.

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

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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