Charter NEX lowers pricing on $430 million secured credit facility

By Sara Rosenberg

New York, Jan. 29 – Charter NEX US Holdings Inc. reduced pricing on its $50 million five-year revolver (B1/B+) to Libor plus 425 basis points from Libor plus 450 bps, on its $270 million seven-year first-lien covenant-light term loan B (B1/B+) to Libor plus 425 bps from Libor plus 475 bps and on its $110 million eight-year second-lien covenant-light term loan (Caa1/CCC+) to Libor plus 825 bps from Libor plus 875 bps, according to a market source.

Also, the 101 soft call protection on the first-lien term loan was extended to one year from six months, the source said.

As before, the revolver has no Libor floor, the first- and second-lien term loans have a 1% Libor floor, the revolver and first-lien term loan have an original issue discount of 99, and the second-lien term loan has a discount of 98½ and hard call protection of 102 in year one and 101 in year two.

There is no MFN sunset provision in the deal, the source continued.

Commitments were due at 5 p.m. ET on Thursday.

Allocations are expected on Friday, the source added.

Morgan Stanley Senior Funding Inc. and Guggenheim Corporate Funding LLC are the joint lead arrangers and bookrunners on the $430 million senior secured credit facility.

Proceeds will be used to help fund the buyout of the company by Pamplona Capital Management LLP.

Closing is expected in early February.

Charter NEX is a manufacturer of monolayer, coextruded and barrier films.

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