Closure Systems flexes $500 million term loan to SOFR plus 400 bps

By Sara Rosenberg

New York, March 13 – Closure Systems International Group Inc. reduced pricing on its $500 million first-lien term loan due March 2029 to SOFR plus 400 basis points from talk in the range of SOFR plus 425 bps to 450 bps, and added a 25 bps step-down at 0.5x inside closing date first-lien net leverage, according to a market source.

The term loan still has a 0% floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $620 million of credit facilities (B2/B) also include a $120 million extended revolver due September 2028.

UBS Investment Bank is the left lead arranger on the deal.

Recommitments were scheduled to be due at 10 a.m. ET on Wednesday, the source added.

Proceeds will be used to refinance the company’s existing first-lien credit facilities.

Cerberus Capital Management LP is the sponsor.

Closure Systems is an Indianapolis-based designer and manufacturer of plastic and aluminum closures and capping equipment/application systems in North and Central America and Japan.

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