An arranger group led by Barclays today launched to U.S. investors SIG Combibloc’s cross-border loan deal, setting price talk of L/E+450-475, with a 1% LIBOR floor and a 99 offer price on the seven-year covenant-lite term loan. The loan includes six months of 101 soft call protection and would yield 5.8-6.07% to maturity at current guidance.
A London bank meeting is set for tomorrow at 2:00 p.m. GMT.
The €1.965 billion, seven-year cross-border term loan backing an acquisition by Onex Corp. is expected to include tranches of €985 million and $1.225 billion, although the official split is yet to be outlined.
The acquisition financing also includes a €300 million, six-year multicurrency revolving credit facility and €700 million-equivalent of senior unsecured notes, split into tranches of €350 million and $440 million.
Arrangers of the loan are Barclays, Bank of America Merrill Lynch, Goldman Sachs, Credit Agricole, Mizuho, Nomura, Rabobank, RBC, Royal Bank of Scotland, and UniCredit. Bank of America Merrill Lynch is left lead on the bonds.
Loan commitments will be due on Tuesday, Feb. 3.
The issuer also launched an offering of eight-year (non-call three) cross-border unsecured notes. Bank of America Merrill Lynch (B&D), Barclays, and Goldman Sachs are global coordinators. Nomura, RBC, Credit Agricole-CIB, Mizuho, RBS, and UniCredit are bookrunners. A European roadshow will take place Jan. 22-26, and the U.S. leg will run Jan. 27-30.
SIG is rated B+/B2. The first-lien debt is rated B+/B1, with a 3 recovery rating. The unsecured debt is rated B-/Caa1, with a 6 recovery rating.
The transaction will leverage SIG at 4.6x on a net-senior-secured basis, and at 6.3x on a net total basis.
Onex Corp. announced its takeover of the Reynolds Group Holdings’ drinks-carton division SIG Combibloc in November. Roughly €3.575 billion will be paid at the close of the acquisition, and up to another €175 million is payable based on the performance of the firm over the next two years.
Reynolds acquired Switzerland-based SIG Combibloc (formerly known as SIG Holding) in May 2007 for roughly €1.7 billion. The group produces packages and cartons for beverage and liquid food products, including juices, milk, soup, and sauces, with most of its revenue generated in Europe and Asia. – Staff reports