Berry Global, the US plastic packaging maker, will raise bonds to finance its purchase of UK plastics maker RPC Group, it said on Wednesday. The debt raising will feature $3bn of senior secured notes in two tranches. This marks the end of leveraged finance bankers' hopes that the auction of RPC would deliver substantial new money supply to the European market.
The bridge package included first lien loans of €1.5bn and £300m, which paid margins of 375bp and 400bp respectively, plus a second lien loan of $1.275bn.
Berry said it would “replace the financing available under some or all of the bridge credit agreements with longer term financial arrangements