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Paragon lifts first-lien term loan to $348 million, updates pricing
By Sara Rosenberg
New York, Dec. 14 – Paragon Films (Secure Acquisition Inc.) upsized its seven-year first-lien term loan (B2/B-) to $348 million from $345 million and set pricing at Libor plus 500 basis points, the high end of the Libor plus 475 bps to 500 bps talk, according to a market source.
Of the total first-lien term loan amount, $45 million is a delayed-draw tranche with ticking fees that were modified to half the margin from days 46 to 90 and the full margin thereafter from half the margin from days 61 to 120 and the full margin thereafter.
Also, pricing on the company’s $100 million eight-year second-lien term loan (Caa2/CCC) firmed at Libor plus 775 bps, the low end of the Libor plus 775 bps to 800 bps talk, the Libor floor was increased to 0.75% from 0.5% and the original issue discount was changed to 97.5 from 98.5, the source said.
In addition, the call protection on the second-lien term loan was revised to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two.
As before, the first-lien term loan has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.
Credit Suisse Securities (USA) LLC, BMO Capital Markets, KKR Capital Markets and RBC Capital Markets are the lead arrangers on the deal.
Recommitments were scheduled to be due at noon ET on Tuesday, 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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