Transcontinental plans new term loans for Coveris Americas purchase

By Sara Rosenberg

New York, April 2 – Transcontinental Inc. plans on getting new term loans to help fund its acquisition of Coveris Americas from Coveris Holdings SA for $1.32 billion, according to a company presentation.

CIBC and Scotiabank provided the debt commitment.

Other funds for the acquisition will come borrowings under existing credit facilities and cash on hand.

Pro forma net debt to adjusted EBITDA is expected to be 3.2 times at closing and decline to close to 2 times by the end of fiscal year 2020.

Closing is expected in the third quarter of Transcontinental’s fiscal year 2018, subject to customary conditions and antitrust approvals.

Transcontinental is a Montreal-based printer and supplier of flexible packaging. Coveris Americas is a Chicago-based manufacturer of flexible plastic and paper products.

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