Coveris Holdings S.A. Successfully Prices Incremental Term Loan

CHICAGO--(BUSINESS WIRE)-- Coveris Holdings S.A. (“Coveris” and together with its direct parent company and its consolidated subsidiaries, the “Coveris Group”), a portfolio company of funds advised by Sun Capital Partners, Inc. today announced that it has received the necessary consents to certain proposed amendments (the “Proposed Amendments”) to Coveris’ existing senior secured term loan facility (the “Term Loan”), which will permit the incurrence of an incremental term loan facility (the “Incremental Term Loan”) in the aggregate amount of approximately $350.0 million (equivalent). The Incremental Term Loan will upsize the Term Loan, which currently comprises a $342.2 million U.S. dollar-denominated senior secured tranche and a €244.7 million euro-denominated tranche. The existing Term Loan and the Incremental Term Loan will have the same terms, including interest rate and maturity date. The Incremental Term Loan will increase the U.S. dollar-denominated tranche of the Term Loan by $172.5 million, which is priced at LIBOR plus 3.50% (with a LIBOR floor of 1.00%), and will increase the Euro-denominated tranche of the Term Loan by €160.0 million, which is priced at EURIBOR plus 3.50% (subject to a EURIBOR floor of 1.00%).

In addition to permitting the incurrence of the Incremental Term Loan, the Proposed Amendments to the Term Loan include amending the negative covenants in the Term Loan to provide the Coveris Group with additional capacity for, among other things, additional indebtedness, restricted payments, dispositions, investments and acquisitions.

Coveris expects the Incremental Term Loan and the Proposed Amendments to close on August 18, 2016 (the “Closing Date”), subject to customary closing conditions.

The Coveris Group intends to use the proceeds from the Incremental Term Loan to redeem (the “Redemption”) all of Coveris Holding Corp.’s (formerly, Exopack Holding Corp.) outstanding 10.00% senior notes due 2018 on the Closing Date, to repay (the “Repayment”) a portion of the amounts outstanding under the North American and United Kingdom asset-backed revolving credit facilities to which certain members of the Coveris Group are party, and to pay any fees, premiums and expenses related to the Redemption and the Repayment. The occurrence of the Redemption and Repayment are conditioned upon the closing of the Incremental Term Loan and the Proposed Amendments.

Goldman Sachs Bank USA, Credit Suisse International and J.P. Morgan Limited are the joint lead arrangers for the Proposed Amendments and the Incremental Term Loan.

ABOUT COVERIS™

As a leading international manufacturing company, Coveris is dedicated to providing solutions that enhance the safety, quality and convenience of products we use every day. In partnership with the most respected brands in the world, Coveris develops vital products that protect everything from the food we eat, to medical supplies, to the touch screen device in our pockets, contributing to the lives of millions every day.

This press release may include projections and other “forward-looking” statements within the meaning of applicable securities laws. Any such projections or statements reflect the current views of Coveris about further events and financial performance. No assurances can be given that such events or performance will occur as projected and actual results may differ materially from these projections.

This notice does not constitute an offer to sell or the solicitation of an offer to buy any securities. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted. It may be unlawful to distribute this document in certain jurisdictions. The information in this document does not constitute an offer of securities for sale in Canada, Japan or Australia.

Neither the content of Coveris’s website nor any website accessible by hyperlinks on Coveris’s website is incorporated in, or forms part of, this announcement. It may be unlawful to distribute this document in certain jurisdictions. Persons into whose possession this announcement comes should inform themselves about and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdictions of any such jurisdiction.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160729005718/en/

COVERIS™
Duane A. Owens, Treasurer
864-641-4710
[email protected]

Source: Coveris

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