Pactiv Evergreen Successfully Repriced and Upsized Term Loan B

Pactiv Evergreen Inc. has successfully completed the repricing and upsizing of its senior secured Term Loan B. The transaction reduced the interest rate margin applicable to the B-4 Term Loans by 75 basis points, from 3.25% to 2.50%, and removed the 11 basis point credit spread adjustment from the pricing structure of the B-4 Term Loans.

Moreover, the B-4 Term Loans were upsized by $340 million, increasing the principal balance to $1.33 billion. The proceeds of the B-4 Term Loans, together with the proceeds of a $350 million draw upon the Company’s revolving credit facility, were used to prepay in full the B-2 Term Loans. Collectively, the repricing and prepayment reduce the Company’s annualized cash interest expense by approximately $14 million.

This move will help Pactiv Evergreen extend its debt maturities, reduce its annual interest expense, and enhance its flexibility to reinvest in the Company and further de-lever the balance sheet.

Pactiv Evergreen Inc. is a leading manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America. The Company's products, many of which are made with recycled, recyclable, or renewable materials, are sold to a diversified mix of customers, including restaurants, foodservice distributors, retailers, food and beverage producers, packers, and processors. Today the company's shares have moved -1.7% to a price of $12.1. If you want to know more, read the company's complete 8-K report here.

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