Private Credit Funds Discuss Financing for Acquisition of Trivium PackagingPrivate Credit Funds Discuss Financing for Acquisition of Trivium Packaging
  • Direct lenders are prepared to offer $2.5 billion in financing contingent upon the emergence of a deal.
  • Trivium’s owners, Ardagh and OTPP, are collaborating with advisors to facilitate the sale process.

Private credit funds are actively engaged in discussions to provide up to $2.5 billion in financing for the potential sale of Trivium Packaging, a US-based packaging firm, according to sources familiar with the situation.

Trivium’s shareholders, Ardagh Group SA and Ontario Teachers’ Pension Plan Board (OTPP), are exploring options to sell the company and are considering assembling a staple financing package for prospective bidders. The proposed private debt would comprise tranches in both dollars and euros, as per the sources who preferred to remain anonymous.

While the process is ongoing, there is no certainty of a final sale, although estimates suggest the company could command a price exceeding $3.5 billion. Previous attempts at a deal were explored in 2021.

Trivium Packaging, established in 2019 through the merger of Ardagh’s food and specialty packaging business with OTPP-backed Exal Corp., specializes in manufacturing metal packaging products for various sectors including food, beauty, and home care. It reportedly generates just under $500 million in earnings before interest, taxes, depreciation, and amortization (EBITDA), according to the sources.

Trivium and Ardagh have not yet responded to requests for comment, while OTPP has declined to provide a comment on the matter.

As Ardagh seeks solutions to address its debt burden, which stands at approximately €10 billion ($10.8 billion), it is intensifying its efforts to divest Trivium. The company has enlisted the services of advisors from Houlihan Lokey Inc. and Kirkland & Ellis LLP for this purpose, while its creditors have formed various groups to manage their interests.
Credits: bloomberg.com

By Tom Brokaw

Hello, I'm journalist and author of the "insiderbez.com"

Leave a Reply

Your email address will not be published. Required fields are marked *