Tekni-Plex talks $126 million incremental term loan at 99.75-par price

By Sara Rosenberg

New York, March 19 – Tekni-Plex Inc. launched on Monday its $126 million incremental covenant-light first-lien term loan due October 2024 that is split between a $78 million drawn tranche and a $48 million delayed-draw tranche with original issue discount talk of 99.75 to par, according to a market source.

Pricing on the incremental term loan matches existing term loan pricing at Libor plus 325 basis points with a 25 bps leverage-based step-down and a 1% Libor floor.

The incremental term loan includes 101 soft call protection for six months.

The delayed-draw tranche has a ticking fee of half the margin from days 46 to 75 and the full margin thereafter.

Expected term loan ratings are B2/B, the source added.

Credit Suisse Securities (USA) LLC is the left lead on the deal.

Commitments are due at 5 p.m. ET on March 27.

Proceeds will be used to fund tuck-in acquisitions.

Tekni-Plex is a King of Prussia, Pa.-based provider of specialty packaging solutions.

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