Bloomberg News

Berry Plastics Seeks Refinancing; RedPrairie Revises Loan Cost

December 12, 2013

Berry Plastics Group Inc. (BERY:US), the packaging company backed by Apollo Global Management LLC, is seeking to refinance bank debt, while RedPrairie is lowering the cost of a $1.44 billion loan.

Berry, based in Evansville, Indiana, is offering to pay interest at 2.75 percentage points to 3 percentage points more than the London interbank offered rate for a $1.13 billion term loan due in seven years, according to a person with knowledge of the transaction. Libor will have a 1 percent minimum.

Credit Suisse Group AG is arranging the deal and investors are asked to let the bank know by Dec. 17 whether they will participate, said the person, who asked not to be identified because terms aren’t set.

RedPrairie, a software provider that merged last year with JDA Software Group Inc., will pay 5 percentage points more than Libor in a re-pricing of a $1.4 billion term loan that was set at a spread of 5.5 percentage points, according to a person with knowledge of the deal. Libor will have 1 percent floor, down from 1.25 percent previously.

Credit Suisse is arranging the transaction with commitments from lenders due on Dec. 16, said the person. RedPrairie had been seeking to pay 4.75 percentage points to 5 percentage points more than Libor.

Arch Coal Inc. (ACI:US) set the final interest rate on a $300 million term loan that will be used to help redeem the company’s 8.75 percent notes due in 2016. The debt will pay 5 percentage points more than Libor, with a 1.25 percent floor, said a person with knowledge of the deal.

Sankaty CLO

The St. Louis-based coal producer sold the debt to investors at 98 cents on the dollar, said the person, who asked not to be identified without authorization to speak publicly.

Loan prices averaged 98.16 cents on the dollar today, according to the Standard & Poor’s/LSTA U.S. Leveraged Loan 100 index.

Sankaty Advisors LLC, the credit arm of Bain Capital LLC, is planning to raise a European collateralized loan obligation of at least 300 million euros ($412.6 million), according to two people with knowledge of the financing, who asked not to be identified because terms of the deal are private.

-With assistance from Jeannine Amodeo and Krista Giovacco in New York; Patricia Kuo in London.

To contact the reporter on this story: Christine Idzelis in New York at cidzelis@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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Companies Mentioned

  • BERY
    (Berry Plastics Group Inc)
    • $24.39 USD
    • 0.04
    • 0.18%
  • ACI
    (Arch Coal Inc)
    • $2.79 USD
    • -0.07
    • -2.51%
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