Clondalkin Said to Seek Responses Tomorrow on $490 Million Loan
Clondalkin Industries BV, a Dutch manufacturer and supplier of packaging products, is seeking commitments tomorrow from lenders on $490 million in loans to refinance debt, according to two people with knowledge of the transaction.
Deutsche Bank AG is leading the financing, which includes a $350 million first-lien term loan due in 2020, a $105 million second-lien term piece due in 2021 and a $35 million revolving line of credit that expires in 2018, said the people, who asked not to be identified because terms are private.
The company, based in Amsterdam, may pay interest at 4.5 percentage points more than the London interbank offered rate with a 1.25 percent floor on the lending benchmark on the first-lien slice, the people said. The debt is being offered at 99.5 cents on the dollar.
The second-lien portion may pay interest at 8.25 percentage points more than Libor with a 1.25 percent floor on the lending benchmark, the people said. The loan is offered at 99 cents on the dollar.
Proceeds will refinance bonds coming due in December and March, Standard & Poor’s wrote in a report on May 10, when it put the company’s B- rating on watch with a “positive” outlook.
“The U.S. debt markets offer flexible terms, including repayment terms, so that makes the market attractive to us,” Coleman O’Neill, finance director at Clondalkin, said in a telephone interview.
First-lien debt is repaid first in a bankruptcy or liquidation, second-lien debt is repaid next. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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