Coveris Holdings S.A. Launches Incremental Term Loan and Proposed Amendments to its Existing Senior Secured Term Loan Facility

CHICAGO--()--Coveris Holdings S.A. (the “Company” and together with its direct parent company and its consolidated subsidiaries, the “Group”), a portfolio company of funds advised by Sun Capital Partners, Inc., announced today the launch of certain proposed amendments (the “Proposed Amendments”) to its existing senior secured term loan (the “Term Loan” and the Term Loan as amended by the Proposed Amendments, the “Amended Term Loan”). The Term Loan currently consists of a $342.2 million U.S. dollar-denominated senior secured tranche, which is currently priced at LIBOR plus 3.50% (with a LIBOR floor of 1.00%), and a €244.7 million euro-denominated tranche, which is currently priced at EURIBOR plus 3.50% (with a EURIBOR floor of 1.00%).

In connection with the Proposed Amendments, the Company intends to upsize the existing tranches by way of a proposed incremental term loan (the “Incremental Term Loan”) in the aggregate amount of $350.0 million (equivalent). The Incremental Term Loan, which is expected to comprise both a U.S. dollar-denominated tranche and a euro-denominated tranche, will mature on May 8, 2019, the same date as the existing Term Loan.

The 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, 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 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.

Additionally, in connection with the Proposed Amendments, the negative covenants in the Term Loan will be amended to provide the Company with additional capacity for, among other things, additional indebtedness, restricted payments, dispositions, investments and acquisitions.

The Incremental Term Loan and the Proposed Amendments to the Term Loan are expected to close in August 2016. 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.

A conference call will be held for investors on July 20, 2016 at 3:00 p.m. (London time) (Dial-in numbers: 08009531289 in the U.K., +1 8668692321 in the U.S., and +44 (0) 203 0095710 for all other international locations; Conference passcode: 51448338).

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 the Company’s website nor any website accessible by hyperlinks on the Company’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 jurisdiction.

Contacts

Coveris
Investor Relations:
Duane Owens, 864-641-4710
duane.owens@coveris.com

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