Colombian Packaging Company Clinches Funds

Phoenix Capital, the Colombian packaging company with assets in the US, Mexico and Venezuela, closed yesterday an $85m facility with tenors of 5 and 7 years. The deal, led by Standard Bank, is heard to have counted on the support of 10 banks, mostly based in the region, including in Colombia and Panama, say executives on it. The company is levered 4.6x and pricing is on a grid. A 5-year tranche pays Libor plus 425 out of the box, while a 7-year piece offers 525bp over Libor. The company is expected to reduce its debt starting this year. When it hits 2.5x leverage, it pays 275bp on the 5-year and 375bp on the 7-year. The deal follows a similar financing for Colombian chemical and plastics maker done in May – a $60m loan with two tranches: a $25m 5-year at Libor plus 285bp and a $35m 7-year at Libor plus 362.5bp out of the box. Standard also led that one.