Greif gives details of $225 million delayed-draw term loan

By Taylor Fox

New York, Nov. 19 – Greif, Inc. and certain subsidiaries including Greif Packaging LLC gave details of a new $225 million delayed-draw term loan A-3 due 2026 led by CoBank, ACB in an 8-K filing with the Securities and Exchange Commission.

The incremental term loan bears interest at Libor plus a margin ranging from 150 basis points to 275 bps, depending on leverage ratio.

There is a ticking fee of 35 bps on the average daily undrawn amount.

The incremental term loan must be funded in a single draw on a business day on or before July 15, 2021.

The incremental term A-3 loan matures on July 15, 2026, with quarterly installments of principal payable on the last day of each fiscal quarter of the company commencing with the first date to occur after the funding date.

The company plans to draw on the term loan to refinance its €200 million 7 3/8% senior notes when they mature in July 2021.

Greif added the incremental term loan under its senior secured credit agreement, which also provides for a $1,275,000 secured term A-1 loan and a $400 million secured term A-2 loan, as previously reported.

JPMorgan Chase Bank, NA is the administrative agent.

Greif is a Delaware, Ohio-based industrial packaging company.

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