Exopack Recapitalizes Transactions

Published: June 21, 2011

CHICAGO, IL | With the guidance and advice as co-manager and co-documentation agent of Mesirow Financial, Exopack Holding Corp., an affiliate of Sun Capital Partners, is recapitalizing its transactions. Headquartered in Spartanburg, SC, Exopack is a full-service plastic and paper flexible packaging solutions manufacturer that specializes in substrate development, film extrusion, printing, lamination and converting of flexible packaging products. Sun Capital is a private investment firm focused on leveraged buyouts, equity, debt and other company investments.

This strategic transaction includes the private placement of $235 million aggregate principal amount of 10% Senior Notes due 2018, the entry into a six-year $350 million senior secured term loan facility, and the amendment and reinstatement of the company’s existing revolving credit facility.

In conjunction with the closing of the transactions, the Exopack accepted for payment all of its outstanding 11¼% senior notes due 2014 that were tendered to the company following its previously announced cash tender offer and consent solicitation prior to the expiration of the early consent deadline. Exopack used a portion of the net proceeds from the offering of the 2018 Notes and borrowings under the new term loan facility to purchase $291,512,000 aggregate principal amount of the 2014 Notes and make related consent payments. Also repaid are all outstanding borrowings under the revolving credit facility, and the company made a distribution to its stockholders and paid related transaction fees and expenses. The company plans to use the remaining net proceeds from the offering of the 2018 Notes and borrowings under the new term loan facility to redeem all of the 2014 Notes that were not tendered following the Tender Offer.