Deutsche Bank and JPMorgan hit the market last week with a $295 million credit backing BWAY Corp.'s acquisition of Industrial Containers' plastic and steel general line pail business. The deal, which also refinances existing debt, includes a $50 million revolver, a CAN$5 million revolver, a $190 million first-lien term loan "B," and a $50 million tranche "C." The deal is covenant lite. Pricing is LIBOR plus 2% on the "B" loan and LIBOR plus 1 3/4% on the other tranches. Kelso & Co. is the equity sponsor; it acquired BWAY in February 2003. The acquisition is expected to close in July.
Moody's Investors Service affirmed the B1 corporate family rating of BWAY and assigned a Ba3 rating to the first lien. BWAY manufactures steel and plastic containers; ICL is a Canadian-based, privately owned packaging company that produces steel drums, steel pails and plastic pails. Kevin Kern, cfo, and Jeffrey O'Connell, treasurer, for BWAY did not return calls. A spokesperson could not be reached. A spokesperson at Industrial Containers also could not be reached.
BWAY last tapped the bank market to back its acquisition of NAMPAC in 2004. Deutsche Bank and JPMorgan also led that financing, which at launch consisted of a $30 million revolver and $225 million "B" loan. Both tranches were priced at LIBOR plus 2 3/4% (LMW, 6/14/2004).