Caraustar Industries to launch $860 million term loan on Friday

By Sara Rosenberg

New York, Feb. 23 – Caraustar Industries Inc. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Friday to launch an $860 million five-year covenant-light first-lien term loan, according to a market source.

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

The term loan is talked at Libor plus 600 basis points with a 1% Libor floor and an original issue discount of 99, the source said.

Included in the term loan is 101 soft call protection for six months.

Expected term loan ratings are Ba2/B+.

Proceeds will be used to refinance existing debt.

Commitments are due at 5 p.m. ET on March 9, the source added.

Caraustar is an Austell, Ga.-based manufacturer of recycled paperboard and converted paperboard products.

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