Paragon Films to launch $445 million of term loans on Wednesday

By Sara Rosenberg

New York, Nov. 30 – Paragon Films (Secure Acquisition Inc.) is set to hold a lender call at 10:30 a.m. ET on Wednesday to launch $445 million of term loans, according to a market source.

Credit Suisse Securities (USA) LLC, BMO Capital Markets, KKR Capital Markets and RBC Capital Markets are the lead arrangers on the deal.

The debt consists of a $345 million seven-year first-lien term loan, of which $45 million is a delayed-draw tranche, and a $100 million eight-year second-lien term loan, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Expected first-lien ratings are B2/B-, and expected second-lien ratings are Caa2/CCC.

Commitments are due at noon ET on Dec. 14, the source added.

Proceeds will be used to help fund the buyout of the company by Rhone Capital.

Closing is expected this year.

Paragon is a Broken Arrow, Okla.-based manufacturer of ultra high-performance cast stretch films that are principally used to unitize product loads while in storage and transit.

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