Consolidated Container flexes term loan B to Libor plus 350 bps

By Sara Rosenberg

New York, May 10 – Consolidated Container Co. reduced pricing on its $605 million seven-year senior secured covenant-light first-lien term loan B (B3/B+) to Libor plus 350 basis points from Libor plus 400 bps, according to a market source.

Also, the original issue discount on the term loan B was tightened to 99.75 from 99.5, the source said.

The term loan B still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $730 million in credit facilities also include a $125 million ABL revolver.

Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Macquarie Capital (USA) Inc. are the bookrunners on the deal.

Proceeds will be used to help fund the acquisition of the company by Loews Corp. from Bain Capital Private Equity for about $1.2 billion, subject to customary purchase price adjustments.

Consolidated Container will be a part of a newly created segment called Loews Packaging Group.

Closing is expected this quarter, subject to customary conditions.

Consolidated Container is an Atlanta-based rigid plastic packaging manufacturer.

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