J.P. Morgan and Deutsche Bank will launch another add-on credit for Riverwood International this summer, hot on the heels of a recently completed $250 million add-on term loan from the banks. The institutional loan, expected also to be in the region of $250 million, will hit the market when Riverwood completes a $350 million initial public offering in the summer, said a banker. "There is a possibility of an additional term loan," said Steve Myers, a spokesman for the paperboard packaging company. The IPO will be used, with the new anticipated loan, to repay outstanding senior and subordinated notes and portions of the revolver, he said.
The last five-year "B" term loan, completed in April, priced at LIBOR plus 21/ 2%. Proceeds were for the redemption of senior notes said the banker. Goldman Sachs andMorgan Stanley are leading the IPO. J.P. Morgan, Deutsche Bank and Salomon Smith Barney are co-managers.