Greif signs for $300 million senior secured term loan

Chicago, May 19 – Greif, Inc. and Greif Packaging LLC signed for a new $300 million senior secured credit agreement with CoBank, ACB as administrative agent and lender on May 17, according to an 8-K filing with the Securities and Exchange Commission.

The term loan will have quarterly amortization starting on July 31 through Jan. 31, 2028, with the outstanding balance due on May 17, 2028.

Interest will be based on SOFR with a credit spread adjustment and a margin that will be based on the company’s leverage ratio. CSA will be 10, 15 or 25 bps, based on one-month, three-month or six-month durations, respectively. The margin will be between 165 basis points and 215 bps, with the initial margin after closing starting at 165 bps. There is a 0% SOFR floor.

Proceeds are being used to repay and refinance a portion of the outstanding borrowings on the company’s existing credit agreement from March 1, 2022 that lists JPMorgan Chase Bank, NA as administrative agent.

Covenants under the new term loan are similar to the company’s existing facility, in that the company must maintain a certain leverage ratio and an interest coverage ratio. The leverage ratio shall not be greater than 4x, with a 0.50 increase adjustment for an acquisition. The interest coverage ratio requires that the ratio generally not be less than 3x at the end of any fiscal quarter for the preceding 12-month period.

The new agreement also contains a most-favored lender provision.

CoBank also created and sold participation interests to farm credit lenders that are federally chartered Farm Credit System lending institutions, the filing noted.

CoBank was the lead arranger and bookrunner.

Greif is an industrial packaging products and services company based in Delaware, Ohio.

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