Tekni-Plex to launch $126 million incremental term loan on Monday

By Sara Rosenberg

New York, March 16 – Tekni-Plex Inc. will hold a lender call at 1:30 p.m. ET on Monday to launch a $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, according to a market source.

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

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 source said.

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, the source continued.

Original issue discount talk on the incremental loan is still to be determined.

Proceeds will be used to fund tuck-in acquisitions.

Commitments are due at 5 p.m. ET on March 27, the source added.

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

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