Novolex finalizes $2.96 billion term loan at 99.75 OID

By Sara Rosenberg

New York, Jan. 23 – Novolex (Clydesdale Acquisition Holdings Inc.) set the original issue discount on its $2.955 billion first-lien term loan due April 2029 (B2/B) at 99.75, the wide end of the 99.75 to par talk, according to a market source.

Pricing on the term loan remained at SOFR+10 basis points CSA plus 375 bps with a 0.5% floor.

The margin has a 7.5 bps sustainability adjustment based on GHG emissions intensity reduction and combined with the CSA the effective margin will be SOFR plus 377.5 bps.

The term loan has 101 soft call protection for six months.

UBS Investment Bank is the arranger on the deal. Credit Suisse is the administrative agent.

Allocations are expected on Wednesday morning, the source added.

Proceeds will be used to reprice an existing sustainability-linked term loan down from SOFR+10 bps CSA plus 425 bps with a 0.5% floor.

Novolex is a Hartsville, S.C.-based manufacturer of packaging products for a range of substrates and end-markets.

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