Multi Packaging Solutions widens discount on second-lien loan to 97½

By Sara Rosenberg

New York, Dec. 4 - Multi Packaging Solutions Inc. revised the original issue discount on its $80 million 61/2-year second-lien term loan (Caa1/CCC+) to 97½ from 98, according to a market source.

Pricing on the second-lien loan is Libor plus 900 basis points with a 1.25% Libor floor. The loan carries hard call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $400 million senior secured credit facility also includes a $30 million five-year revolver (B1/B) and a $290 million six-year first-lien term loan (B1/B).

The first-lien term loan is priced at Libor plus 475 bps with a 1.25% Libor floor and an original issue discount of 99. The loan also has 101 soft call protection for one year.

Covenants include net first-lien leverage requirement of 5 times, stepping to 4.5 times at December 2013 and 4 times at December 2014, and a total net leverage requirement of 6.5 times, stepping down to 6 times at December 2013 and 5.5 times at December 2014.

Barclays Capital Inc. and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt, redeem preferred stock and pay dividends or other distributions to shareholders.

First-lien leverage is 3.7 times and total leverage is 4.6 times.

Multi Packaging Solutions is a New York-based manufacturer of specialty print-based packaging products for the pharmaceutical, multi-media and consumer markets.

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