Exopack Holding Corp. ("Exopack"), an affiliate of Sun Capital Partners ("Sun Capital"), has announced the completion of a recapitalization of the company's capital structure.The recapitalization includes a $350 million senior secured term loan facility, a $235 million senior note offering at 10%, and a $75 million revolving line of credit.
The company used the proceeds from the recapitalization to repay its existing $320 million senior notes at 11.25%, to repay its existing revolving line of credit, to pay a dividend to Sun Capital, and to pay customary closing fees for a transaction of this size and type.
The new capital structure extends the maturity of Exopack’s debt, reduces its cost of capital, increases its liquidity and provides significant availability under its revolving line of credit. This affords Exopack the financial flexibility for continued growth through investment in leading-edge equipment and innovative technologies, as well as the ability to pursue future complimentary acquisitions.
Exopack Holding Corp.
Exopack Holding Corp. Announces the Completion of its Recapitalization
June 8, 2011