Paragon Films sets first- and second-lien term loan price talk

By Sara Rosenberg

New York, Dec. 1 – Paragon Films (Secure Acquisition Inc.) released price talk on its $345 million seven-year first-lien term loan (B2/B-) and $100 million eight-year second-lien term loan (Caa2/CCC) in connection with its lender call on Wednesday, according to a market source.

Talk on the first-lien term loan is Libor plus 475 basis points to 500 bps with a 0.5% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 775 bps to 800 bps with a 0.5% Libor floor and a discount of 98.5, the source said.

Of the total first-lien term loan amount, $45 million is a delayed-draw tranche with ticking fees of half the margin from days 61 to 120 and the full margin thereafter.

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.

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

Commitments are due at noon ET on Dec. 14.

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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