March 27 (Bloomberg) -- Mauser AG, a German industrial packager, will pay higher rates to lenders to get a maturity extension, according to three people familiar with the matter.
Mauser, whose 2007 buyout by Dubai International Capital LLC was backed by about 840 million euros ($1.1 billion) of debt, proposed to increase the interest rate on the group’s senior loans by 200 basis points, higher than the 162.5 basis points previously offered, said the people, who declined to be identified because the offer is private.
After the increase, the term loan B and C would pay a blended interest margin at 450 basis points more than benchmarks, the people said. Creditors will get 75 basis points for agreeing to the request and committing funds to the extended debt, they said. A basis point is 0.01 percentage point.
The transaction is coordinated by Barclays Plc and Bank of America Corp, people have said previously.
A London-based spokeswoman for Dubai International, who asked not to be named citing company policy, declined to comment on the deal. Officials at Bruehl, Germany-based Mauser didn’t respond to an e-mail and telephone call seeking comment.
The company, formerly known as Mauser-Werke GmbH, makes plastic packaging and metal drums in countries including the U.S., U.K., India and China, according to its website.
To contact the reporter on this story: Julie Miecamp in London at email@example.com
To contact the editor responsible for this story: Faris Khan at firstname.lastname@example.org