Five Star flexes $630 million term loan to SOFR plus 425 bps

By Sara Rosenberg

New York, April 27 – Five Star Holding Corp. trimmed pricing on its $630 million seven-year first-lien term loan (B2/B) to SOFR plus 425 basis points from SOFR plus 450 bps and removed a 25 bps step-down at 0.5x inside closing date first-lien net leverage, according to a market source.

Furthermore, the original issue discount on the first-lien term loan finalized at 98.5, the tight end of the 98 to 98.5 talk, and some changes were made to documentation, the source said.

As before, the first-lien term loan has a 25 bps step-down at 0.75x inside closing date first-lien net leverage, a 0.5% floor, 101 soft call protection for six months and amortization of 1% per annum.

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.

Recommitments were scheduled to be due at 1:30 p.m. ET on Wednesday, the source added.

The company is also getting a $250 million privately placed second-lien term loan (Caa2/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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