Plastipak $850M term loan B prices tight to talk, gains on break; terms

Investors have received allocations of Plastipak Holdings Inc.'s $850 million, seven-year covenant-lite term loan B that priced tight to talk via a Wells Fargo-led arranger group at L+250, with a 0.50% Libor floor and an original issue discount of 99.5, according to sources. The loan was quoted in a 99.75/100.125 market on the break. Proceeds from the deal will be used to refinance existing debt, including a $738 million TLB due October 2024 (L+250, no floor) and a $500 million issue of 6.25% senior unsecured notes due 2025. In addition to the new TLB, the company is issuing a new $250 million term loan A due 2026 and will amend and extend its existing $300 million revolving credit facility to a 2026 maturity date, according to S&P Global Ratings. The TLA and revolver will be subject to leverage and interest coverage covenants. Privately held Plastipak manufactures plastic containers in four product categories: carbonated and noncarbonated beverage; consumer cleaning; food and processed juices; and industrial, automotive and agricultural.

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