Berry Plastics' $675 million term loan "B" broke at 100-100 1/4 in the secondary market last week. A dealer said trading volume was "tame." The loan continued to trade in the low pars. The dealer added that the LIBOR plus 1 3/4% coupon on the loan may have caused the light trading. The loan was originally pitched at LIBOR plus 2% (CIN, 8/4).
Credit Suisse and Citigroup lead the financing, which backs the leveraged buyout of BPC Holding, the parent company of Berry Plastics. Apollo Management and Graham Partners are buying the company from Goldman Sachs Capital Partners and JPMorgan Partners for $2.25 billion (CIN, 8/4). Jim Kratochvil, cfo, was traveling and could not be reached.
Moody's Investors Service assigned a Ba2 to the term loan "B." It estimates total debt to EBITDA would be more than 6.5 times after the LBO.