Five Star launches $630 million term loan at SOFR plus 450 bps

By Sara Rosenberg

New York, April 19 – Five Star Holding Corp. launched on Tuesday its $630 million seven-year first-lien term loan (B) with price talk of SOFR plus 450 basis points with 25 bps step-downs at 0.5x and 0.75x inside closing date first-lien net leverage, a 0.5% floor and an original issue discount of 98 to 98.5, according to a market source.

The first-lien term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Goldman Sachs Bank USA, Morgan Stanley Senior Funding Inc., Neuberger Berman, Credit Suisse Securities (USA) LLC and KKR Capital Markets are the arrangers on the deal.

Commitments are due at noon ET on April 28, the source added.

The company is also getting a $250 million privately placed second-lien term loan (CCC+).

Proceeds will be used to help fund the buyout of the company by The Jordan Co. and pay related fees and expenses.

Closing is expected in May.

Five Star is a Houston-based integrated flexible packaging company.

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