Berry Plastics to be obligor for Covalence notes following merger

By Angela McDaniels

Seattle, March 12 - Berry Plastics Group, Inc. will be the obligor of the notes of Covalence Specialty Materials Corp. and Berry Plastics Holding Corp. following the merger of Berry Plastics Group and Covalence Specialty Materials Holding Corp., according to a company news release.

The affected notes are Berry Plastics Holding's $525 million 8 7/8% second-priority senior secured notes due 2014 and $225 million floating-rate second-priority senior secured notes due 2014 and Covalence's $265 million 10¼% senior subordinated notes due 2016.

Berry Plastics Group and Covalence Holding announced on Monday that they entered into a definitive agreement under which Berry Group will merge with Covalence Holding in a stock-for-stock merger. The combined company will be called Berry Plastics Group, Inc.

The transaction is expected to close in April and remains subject to the receipt of required regulatory approvals.

Evansville, Ind.-based Berry Plastics manufactures rigid plastic packaging containers.

Covalence is a manufacturer of plastic film products, adhesives and flexible packaging products based in Bedminster, N.J.

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