TricorBraun accelerates commitment deadline for $1.234B term loan

Timing is accelerated on the $1.234 billion covenant-lite first-lien term loan backing the buyout of TricorBraun Inc. and commitments, originally due on Feb. 3, are now due at noon ET on Jan. 29, according to sources. No other changes were announced.

Price talk for the seven-year term loan is L+350-375 with a 0.75% Libor floor, offered at 99.5. That implies a yield to maturity of roughly 4.41%-4.67%. Lenders are offered six months of 101 soft call protection.

The financing comprises a $1.034 billion funded term loan and a $200 million delayed-draw tranche. There is a ticking fee on the delayed-draw tranche of 50% of the margin after 60 days, stepping to 100% of the margin after 120 days.

Credit Suisse leads an arranger group that includes Antares Capital, Nomura and UBS.

Financing for the buyout will also include a $140 million asset-based lending revolver and $376 million of second-lien notes that will be privately placed.

Corporate and facility ratings are B- from S&P Global Ratings, and the recovery rating on the loan is 3. The facility rating from Moody's is B2 and the corporate rating is B3.

The deal backs the buyout of the company by Ares Management and Ontario Teachers' Pension Plan Board. Current majority owner AEA Investors and company management will retain a significant investment in the company.

TricorBraun is a global provider of rigid packaging products to the healthcare, personal care, food and beverage, and industrial chemical, household chemical and animal health end-markets.