Anchor Packaging sets first-lien term loans at Libor plus 400 bps

By Sara Rosenberg

New York, July 12 – Anchor Packaging LLC firmed pricing on its $320 million seven-year covenant-lite first-lien term loan (B2/B) and $70 million delayed-draw seven-year covenant-lite first-lien term loan (B2/B) at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and added step-downs, according to a market source.

Also, the original issue discount on the first-lien term loans finalized at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The first-lien debt still has a 0% Libor floor and 101 soft call protection for six months.

The company’s $545 million of credit facilities also include a $60 million revolver (B2/B) and a $95 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Nomura, Antares Capital and Neuberger Berman are the lead arrangers on the deal.

Recommitments were scheduled to be due at 11:30 a.m. ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by Jordan Co.

Anchor Packaging is a Ballwin, Mo.-based producer of polypropylene rigid takeout containers.

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