Caraustar Industries gets $75 million add-on term loan C at OID of 99

By Sara Rosenberg

New York, Aug. 3 – Caraustar Industries Inc. completed a fungible $75 million add-on term loan C due May 1, 2019 that was sold at an original issue discount of 99, according to a market source.

Pricing on the add-on term loan is Libor plus 675 basis points with a 1.25% Libor floor, which matches existing term loan C pricing, the source said.

Like the existing loan, the add-on term loan has call protection of 102 through February 2016 and 101 through February 2017.

With the add-on, the company’s term loan C totals $470 million.

Credit Suisse Securities (USA) LLC acted as the lead bank on the deal.

Proceeds were used to fund the acquisition of Summer Industries.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard and converted paperboard products. Summer Industries is a Welcome, N.C.-based manufacturer of paper tubes, cores, and cans made from 100% recycled paperboard.

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