TricorBraun to be acquired by Ares, Ontario Teachers' Pension Plan

TricorBraun Inc. has announced today that it has entered into a definitive agreement with Ares Management and Ontario Teachers' Pension Plan Board for the private equity firms to acquire a majority interest in the company, according to a press release.

Terms of the transaction were not disclosed, but the transaction is expected to close in the first quarter of 2021 subject to customary closing conditions and regulatory approvals. Additionally, current majority owner AEA Investors and company management will retain a significant investment in the company.

The company currently has a covenant-lite first-lien term loan due November 2023 (L+375, 1% Libor floor) that ticked up to 99.875/100.375 today, from 99.375/100. The term loan totaled approximately $729 million following an $80 million fungible add-on term loan in December 2018 to fund an acquisition and to pay down revolver borrowings. The term loan originally dates to November 2016 when it was issued to back the buyout of the company by AEA Investors.

First-lien facility ratings are currently B-/B2, with a 3 recovery rating from S&P Global Ratings, while corporate ratings are currently B-/B3, with stable outlooks from S&P Global Ratings and Moody's.

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