Coveris Holdings reveals talk on add-on euro term loan, repricing

By Sara Rosenberg

New York, May 11 – Coveris Holdings SA launched on Monday its €50 million to €75 million add-on term loan due May 2019 and a repricing of its existing $617 million-equivalent U.S. dollar and euro senior secured term loan due May 2019 with talk of Libor/Euribor plus 350 basis points to 375 bps with a 1% floor, according to a company presentation.

The new euro term loan is offered with an original issue discount of 99.75, and the repricing is offered at par.

All of the term loan debt will have 101 soft call protection for six months.

Currently, the company’s existing term debt is split between a $429.6 million tranche priced at Libor plus 425 bps with a 1% Libor floor and a $187.9 million-equivalent euro term loan priced at Libor plus 475 bps with a 1% Libor floor.

Proceeds from the new add-on euro term loan will be used to repay a portion of the existing U.S. dollar-denominated term loan so that it will total somewhere between $348.2 million and $375.3 million.

Goldman Sachs Bank USA and J.P. Morgan Securities LLC are the joint lead arrangers and joint bookrunners on the covenant-light term loans.

Closing is expected in the second half of this month.

Coveris, a portfolio company of Sun Capital Partners Inc., is a Chicago-based manufacturer and distributor of packaging solutions and coated film technologies.

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