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Crown Holdings eyes new TLA, TLB for $1.6B (€1.2B) Mivisa Envases (Blackstone) acquisition

crownCrown Holdings disclosed it has obtained financing commitments from Citigroup in connection with its planned €1.2 billion ($1.6 billion) acquisition of Mivisa Envases, a Spanish can manufacturer, from affiliates of The Blackstone Group.

The financing commitments provide for a potential amendment to Crown’s existing senior secured credit facility to allow the company to obtain a new A term loan of up to $960 million and a new $700 million B term loan, according to a regulatory filing.

The other option is for Crown to enter into a new senior secured credit facility that would be split between a $1.18 billion A term loan, a $700 million B term loan, a €110 million term loan, and a $1.2 billion revolver. The pro rata debt would mature in five years, while the TLB would mature in seven. Crown may also seek alternative forms of financings, the company noted in the filing.

The acquisition is expected to close in 2014.

As of Sept. 30, Crown had $221 million outstanding under its TLA due 2016 and the $149 million outstanding under its euro-denominated term loan due 2016. Pricing on both loans opens at L+175. The company also has $436 million outstanding under its revolver.

In January, the company completed a $1 billion offering of 4.5% senior unsecured notes due 2023 to redeem the $400 million outstanding under its senior notes due 2017 and to repay $500 million under its senior secured credit facility.

Philadelphia-based Crown Holdings, formerly Crown Cork & Seal, supplies packaging products to consumer-marketing companies around the world. Corporate issuer ratings are BB+/Ba1. – Richard Kellerhals

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