Multi Packaging launches $220 million term D at Libor plus 325 bps

By Sara Rosenberg

New York, Sept. 19 – Multi Packaging Solutions International Ltd. launched on Monday its $220 million non-fungible incremental covenant-light term loan D (B1/BB-) with price talk of Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Commitments are due at 5p.m. ET on Sept. 28, the source said.

Proceeds will be used to redeem the company’s $200 million 8½% senior notes due 2021 on Oct. 17.

In addition, the company plans on repricing its existing euro and sterling term loan B debt, and to upsize its revolver to $70 million from $50 million.

The repriced €132 million covenant-light term loan is talked at Euribor plus 325 bps, versus current pricing of Euribor plus 375 bps, and the repriced £88 million covenant-light term loan is talked at Libor plus 400 bps, versus current pricing of Libor plus 450 bps, the source continued.

Both repriced term loans have a 1% floor and a par issue price.

The incremental term loan D and the repriced term loans will get 101 soft call protection for six months, the source added.

The company is not proposing to reprice its existing U.S. term loan B.

Pro forma leverage is 3.7 times total and secured.

Multi Packaging Solutions is a New York-based provider of packaging solutions to the health care, consumer and multi-media markets.

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