Constantia Flexibles reworks euro and U.S. dollar term loan sizes

By Sara Rosenberg

New York, Feb. 20 – Constantia Flexibles upsized its euro seven-year covenant-light term loan B to €639 million from €539 million and downsized its U.S. seven-year covenant-light term loan B to €200 million equivalent from €300 million equivalent, according to a market source.

The company is still getting a €150 million delayed-draw term loan.

Pricing on the term loan debt was reduced to Euribor/Libor plus 400 basis points from talk of Euribor/Libor plus 425 bps to 450 bps, the source said.

Also, the original issue discount on the euro and U.S. term loans was tightened to 99½ from 99, while the delayed-draw loan is still offered at 99, the source continued.

The loans still have a 1% floor and 101 soft call protection for one year.

J.P. Morgan Securities LLC and UniCredit are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by the Wendel Group from One Equity Partners and the H. Turnauer Foundation for about €2.3 billion.

Closing is expected in the first half of this year, subject to approval from antitrust authorities.

Constantia Flexibles is a Vienna-based manufacturer of flexible packaging products and labels.

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