BANK ONE is preparing to launch syndication of a $400 million credit for Printpack, an Atlanta-based producer of flexible packaging. The deal is expected to hit the market by the end of the month. The facility will be used to redeem the 9 7/8% notes due in 2004, the 10 5/8% senior subordinated notes due in 2006 and replace the existing credit line, explained Susan Folds, a spokeswoman for Printpack. The existing line, a $188 million facility, was arranged by First National Bank of Chicago. Officials at BANK ONE did not return calls.
The company provides packaging primarily to consumer food companies, explained Folds, who could not provide comment on the spreads, reasons for the refinancing or when the bank meeting is being held. Folds referred questions to Trip Ceitter, treasuer, who could not be reached for comment. Folds said closing of the loan is expected in March.