Industrial liner maker聽尝辞辫补谤别虫听is in the market with a聽coercive exchange offer targeting left-out creditors after the company secured commitments聽from the first-lien聽ad hoc group to fund a $135mn new money portion of a super-priority loan, sources said.
The deal framework is aligned with聽LFI鈥檚听聽from late last month, detailing the planned terms and structure of the liability management exercise that will, in effect, create five layers of debt in the Pamplona Capital-owned company.
The 1L ad hoc group鈥攔epresenting around 75% of the company鈥檚 cross-border first-lien聽term loan鈥攈as agreed to exchange its positions into new debt while also kicking in the聽$135mn of new money, which is structured as part of a $175mn super-priority facility, sources noted, citing a notification from the company to lenders from earlier聽this week. The remaining first-lien lenders have until March 15 to participate, sources said.
Of note, the super-priority tranche will be comprised of $135mn in new money, a $20mn PIK fee and a $20mn roll-up of existing 1L debt聽from the ad hoc group, sources noted. Existing 1L lenders that are not part of the ad hoc group will be allowed to swap their聽debt holdings into a first-lien third-out tranche at 65, ranking senior to a fourth-out tranche created by way of a second-lien discounted exchange at 50 cents on the dollar. Meanwhile聽non-participating 1L lenders will be left at the bottom of the revised capital structure.
As reported, the 1L group is advised by Lazard and Akin Gump, while the company has been consulting with PJT. The sole second-lien holder, Blue Owl, is working with Perella Weinberg and Paul Hastings.
The $370mn S+450 USD term loan due July 2026 and $186mn E+525 euro TL due 2026 has been thinly quoted. The USD TL is quoted 71-73.5 today, roughly unchanged over the past month, Markit shows.
Deal terms were detailed in聽LFI鈥檚 Feb 20 report, including the following chart made by聽LFI:
Skylar Chen
LevFin Insights
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