Fort Dearborn postpones $90M incremental term loan for M&A

Fort Dearborn Company has canceled its lender call scheduled for 10 a.m. ET today and decided to delay its planned $90 million incremental first-lien term loan, according to sources.

Proceeds from the add-on were to be used to finance the company's acquisition of Hammer Packaging Corp. and the loan would have been fungible with the issuer's existing covenant-lite first-lien term loan due October 2023 (L+400, 1% Libor floor). Deutsche Bank and Golub Capital were lead arrangers for the transaction.

The issuer's existing first-lien term loan totaled $480 million when it was issued in October 2016 to back the buyout of the company by Advent International. Financing for that transaction also included a $145 million second-lien term loan due October 2024 (L+850, 1% Libor floor).

Fort Dearborn Co., based in Elk Grove, Ill., manufactures decorative labels for packaging applications, including roll-fed, pressure sensitive, cut and stack and shrink sleeve labels.