Crown Holdings Inc., the U.S. consumer-goods packaging manufacturer that’s buying Spanish food-can maker Mivisa Envases SAU, obtained a financing commitment to support its 1.2 billion euros ($1.64 billion) purchase.
Citigroup Inc. will provide the loan funding, which may come in the form of an incremental $960 million portion of A term loans and an additional $700 million of B portion debt under the company’s existing credit pact, according to a regulatory filing today. Alternately, a new deal might consist of $1.2 billion in revolving credit lines, a $1.18 billion term A slice, 110 million euros of term loans and a $700 million B piece.
Crown is buying Mivisa, the biggest food-can producer in the Iberian peninsula and Morocco, from Blackstone Group LP, N+1 Mercapital and the company’s management, and the deal is expected to close next year, Philadelphia-based Crown said today in a statement. Closing of the acquisition isn’t subject to financing or funding condition, according to the filing.
Crown’s $332.5 million remaining loan under a pact it obtained in 2011 and that matures in June 2016, was quoted today at 100.25 cents on the dollar, according to prices compiled by Bloomberg.
A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. A term loan A is sold mainly to banks. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.