Berry Plastics to issue $1.7 billion of term loans, $800 million of notes to purchase Avintiv

By Lisa Kerner

Charlotte, N.C., Aug. 13 – Berry Plastics Group, Inc. has fully committed debt financing for its proposed acquisition of Avintiv Inc., said chief financial officer Mark Miles.

The purchase price plus expenses totals about $2.5 billion, Miles said during a presentation at the Jeffries Industrial Conference on Thursday in New York.

Berry expects to issue $1.7 billion of credit facility term loans and $800 million of senior secured second lien notes to fund the deal.

Once the transaction is completed, Miles said Berry will have a long-dated capital structure with a low cost of debt.

As previously reported, Berry expects to repay Avintiv outstanding debt in full simultaneously with the closing of the acquisition as part of the merger consideration.

The outstanding debt includes loans under Avintiv Specialty Materials Inc.’s senior secured credit agreement dated Dec. 19, 2013, its 7¾% senior secured notes due 2019, its 6 7/8% senior notes due 2019 and its credit agreement dated Jan. 28, 2011.

Closing is expected by the end of 2015.

Berry Plastics is an Evansville, Ind.-based manufacturer and marketer of value-added plastic consumer packaging and engineered materials. Avintiv is a Charlotte, N.C.-based developer, producer and marketer of specialty materials used in infection prevention, personal care and high performance solutions.

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