Berry Plastics sets $1B add-on cov-lite TL to redeem bonds

Berry Plastics is coming to market today with a $1 billion, seven-year add-on B term loan to back the redemption of three issues of bonds. The deal launches with a lender call at 1:30 p.m. EST via Credit Suisse, sources said.

Price talk on the covenant-lite loan is L+300 with a 1% LIBOR floor, offered at 99.5. The loan includes a 101, one-year soft call premium.

Commitments are due on Friday at 2:00 p.m. EST.

Berry intends to use the net proceeds from the borrowing of the loan to redeem its second priority senior secured floating-rate notes due 2014, first priority senior secured floating-rate notes due 2015, and 10.25% senior subordinated notes due 2016.

The B/B3 rated issuer went public last year, and will report its latest results on Thursday after the market close, sources said.

As of March 2012, there was $1.14 billion outstanding under the company’s term loan due April 2015. The covenant-lite loan is priced at L+200. There’s no MFN protection on the existing loan, sources noted.

Evansville, Ind.-based Berry Plastics manufactures injection-molded plastic packaging, thermoformed products, flexible films, and tapes and coatings. – Chris Donnelly

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