March 6, 2018 / 3:51 PM / in 7 months

Albea attempts €715m-equiv loan refi after PAI acquisition

LONDON, March 6 (LPC) - French cosmetics packaging company Albea is set to refinance €715m-equivalent of leveraged loans on more attractive terms, following PAI Partners’ buyout of the firm, banking sources said.

PAI bought Albea earlier this year from Sun Capital. In an unusual move for Europe’s leveraged loan market it exercised a portability clause to enable Albea’s loans to stay in place following a change of control, banking sources said.

It has now decided to conduct a refinancing, in a bid to reprice the loans lower and shave up to 50bp off of current pricing, the sources said.

A €385m first lien term loan is guided to pay 350bp-375bp over Euribor, with a 0% floor and a US$406m first lien term loan is guided to pay 325bp-350bp over Libor, with a 1% floor, the sources said.

The term loans, which mature in April 2024, are offered at 99.75 OID and with 101 soft-call protection for six months.

The euro loan currently pays 400bp over Euribor and the dollar loan currently pays 375bp over Libor.

Credit Suisse and BNP Paribas are bookrunners on the refinancing, with the latter also administration agent.

Price guidance follows a bank meeting in London on Tuesday, with a call for US investors scheduled for Wednesday. Lenders have been asked to commit to the deal by March 14.

Ratings are B2/B.

As the portability feature has been used it will no longer be on offer if PAI opts to sell the company.

“They lose the portability but I think investors will see PAI as a strong sponsor and therefore be happy with the situation,” a banker said.

The Albea acquisition, in which PAI had initially partnered with Bain Capital but then opted to bid alone, valued the French company at about US$1.5bn, according to Reuters.

Albea issued €150m of pay-if-you-can notes in February for the acquisition.

Albea, formerly known as Alcan Packaging Beauty, has grown strongly since its buyout by Sun in 2010, helped by a series of acquisitions of such as that of Rexam Personal Care in 2012.

Editing by Claire Ruckin

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