Pactiv Evergreen Inc. Successfully Reprices and Upsizes Term Loan
Rhea-AI Summary
Pactiv Evergreen Inc. (NASDAQ: PTVE) has successfully repriced and upsized its $990 million senior secured Term Loan B to $1.33 billion, maturing on September 24, 2028. The interest rate margin on these loans has been reduced by 75 basis points, from 3.25% to 2.50%, and an 11 basis point credit spread adjustment has been removed. The company also prepaid its $690 million Term Loan B, due February 2026, using proceeds from the upsized loan and a $350 million draw from its revolving credit facility. This refinancing is expected to lower the company’s annual cash interest expense by approximately $14 million. CFO Jon Baksht highlighted the strong lender support and the benefits of extended debt maturities and reduced interest expenses, which will enhance the company's ability to reinvest and de-lever its balance sheet.
Positive
- Successfully repriced and upsized Term Loan B from $990 million to $1.33 billion.
- Interest rate margin reduced by 75 basis points, from 3.25% to 2.50%.
- Removal of 11 basis point credit spread adjustment.
- Annual cash interest expense reduced by approximately $14 million.
- Extended debt maturities to September 24, 2028.
- Enhanced financial flexibility for reinvestment and de-leveraging.
Negative
- Increased principal balance on debt from $990 million to $1.33 billion.
- Dependency on the revolving credit facility, drawing $350 million.
- Continued high level of debt despite refinancing.
News Market Reaction – PTVE
In the trading session that priced this news, PTVE declined 0.16%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
LAKE FOREST, Ill., May 29, 2024 (GLOBE NEWSWIRE) -- Pactiv Evergreen Inc. (NASDAQ: PTVE) (“Pactiv Evergreen” or the “Company”) today announced that the Company successfully completed the repricing and upsizing of its
This transaction reduced the interest rate margin applicable to the B-4 Term Loans by 75 basis points, from
Jon Baksht, Chief Financial Officer of Pactiv Evergreen, said, “We are pleased with the strong demand and lender support for the repricing and upsizing. As a result of the transaction, we have extended our debt maturities and reduced our annual interest expense, enhancing our flexibility to reinvest in the Company and further de-lever the balance sheet.”
About Pactiv Evergreen Inc.
Pactiv Evergreen Inc. (NASDAQ: PTVE) is a leading manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America. The Company produces a broad range of on-trend and feature-rich products that protect, package and display food and beverages for today’s consumers. Its 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. Learn more at www.pactivevergreen.com.
Contact:
Curt Worthington
847.482.2040
InvestorRelations@pactivevergreen.com
