Crown Holdings gets $1.1 billion, €450 million incremental term loans

By Marisa Wong

Los Angeles, Dec. 18 – Crown Holdings, Inc. amended on Dec. 13 its existing credit agreement with Deutsche Bank AG New York Branch as administrative agent, Deutsche Bank AG, London Branch as U.K. administrative agent and Deutsche Bank AG, Canada Branch as Canadian administrative agent for incremental term loans, according to an 8-K filing with the Securities and Exchange Commission.

Crown Americas LLC, Crown European Holdings SA and Crown Metal Packaging Canada LP are borrowers under the credit agreement.

The amendment provided for the commitment to fund $1.1 billion of additional term A loans and €450 million of additional term euro loans.

Proceeds from the incremental loans, together with proceeds from the €550 million of ¾% senior notes due 2023 issued by Crown European Holdings, cash on hand and borrowings under the revolving facilities under the amended credit agreement, were used to refinance in full the euro term B loans, the term euro loans, the dollar term B loans and the term A loans outstanding under the existing credit agreement.

The amendment also replaced in full of the Canadian revolving commitments under the existing credit agreement with $50 million of new Canadian revolving commitments, replaced in full the dollar revolving commitments under the existing credit agreement with $600 million of new dollar revolving commitments and replaced in full the multicurrency revolving commitments under the existing credit agreement with $1 billion of new multicurrency revolving commitments.

The maturity date for the additional term A loans, additional term euro loans and the revolvers will be the fifth anniversary of the closing date of the amendment.

Interest is equal to Libor plus 150 basis points, subject to step down based on the total leverage ratio and further step down based on the “management score” with respect to environment, social and governance factors most recently calculated and assigned to the company by Sustainalytics BV.

Crown Holdings is a Philadelphia-based provider of consumer packaging.

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