GE Capital last Wednesday launched syndication of a $145 million recapitalization for Ranpak Corp. Proceeds from the facility will be used to refinance the bank debt from First Atlantic Capital's 2002 leveraged buyout of the company and pay a dividend to First Atlantic.
The deal comprises a six-year, $90 million "B" loan; a five-year, $15 million revolver; and a six-and-a-half-year, $40 million second-lien "B" loan. Price talk on the revolver is LIBOR plus 31/2%, while the first-lien "B" loan is being talked at LIBOR plus 33/4%. There is no price talk yet on the second lien. The facility will have a Euro tranche carve-out of the first-lien "B" loan, but the size of the carve-out has not been determined.
The old facility comprised a $13 million revolver, $26 million "A" loan and $26 million "B" loan. The pro rata is priced at LIBOR plus 31/2% and the "B" loan is priced at LIBOR plus 4%. GE was the lead on the previous debt. The company generates $32 million of EBITDA and closing leverage is 2.9 times senior and 4.3 times total. Ranpack is a manufacturer of specialty paper packaging systems. First Atlantic invested in Ranpak through its Atlantic Equity Partners III fund. GE bankers declined comment. Ranpak and First Atlantic officials did not return calls.