SIG Combibloc launches term loan at Libor/Euribor plus 425-450 bps

By Sara Rosenberg

New York, Jan. 20 – SIG Combibloc Group AG launched with a bank meeting in New York on Tuesday its €1,965,000,000-equivalent U.S. dollar and euro seven-year covenant-light term loan with price talk of Libor/Euribor plus 450 basis points to 475 bps with a 1% floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s €2,265,000,000 equivalent credit facility (B1/B+) also includes a €300 million six-year multicurrency revolver.

A bank meeting for European investors will take place in London on Wednesday.

Commitments are due on Feb. 3, the source added.

Barclays, Bank of America Merrill Lynch, Goldman Sachs & Co., Nomura Securities Co. Ltd., RBC Capital Markets LLC, Credit Agricole, Mizuho, RBS Securities Inc., UniCredit and Rabobank are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Onex Corp. for up to €3.75 billion, of which €3,575,000,000 will be paid at the closing and an additional up to €175 million will be payable based on the financial performance of SIG Combibloc in 2015 and 2016.

Other funds for the transaction will come from a €700 million equivalent notes offering and equity.

Net senior secured leverage is 4.6 times, and net total leverage is 6.3 times.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

SIG Combibloc is a Switzerland-based supplier of carton packaging and filling machines for beverages and food.

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