Deutsche Bank and J.P. Morgan last week launched syndication of a $255 million facility backing BWAY Corp.'s acquisition of North America Packaging Corp. (NAMPAC). The deal comprises a $30 million revolver and $225 million "B" loan. Both tranches were offered at LIBOR plus 2 3/4%. The revolver will be undrawn at closing. Spokesmen from the lead banks declined comment and Jeffery O'Connell, BWAY's treasurer, did not return calls.
BWAY manufactures steel and plastic containers including aerosol cans. One loan investor said he will stay away from the credit because he does not like the aerosol business, but said the deal is going well. Private equity firm Kelso & Co. acquired BWAY in February 2003. Kelso and management are giving $30 million in new cash equity to allow BWAY to complete the transaction. Deutsche Bank advised BWAY and J.P. Morgan advised NAMPAC.