Ranpak Holdings Corp. Completes Refinancing of Senior Secured Credit Facilities and Enters into New Credit Agreement

On December 19, 2024, Ranpak Holdings Corp. (NYSE:PACK) announced the successful completion of the refinancing of its existing senior secured credit facilities. According to the 8-K SEC filing, Ranger Pledgor LLC, Ranpak Corp., and Ranpak B.V. finalized the refinancing and entered into new senior secured credit facilities through a First Lien Credit Agreement. UBS AG, Stamford Branch, acted as the Administrative Agent with joint lead arrangers and joint bookrunners including UBS Securities LLC, Goldman Sachs Bank USA, Morgan Stanley Senior Funding, Inc., and Wells Fargo Securities, LLC.

The newly established senior secured credit facilities include a $410 million U.S. dollar-denominated first lien term facility (the “Term Facility”) and a $50 million revolving facility available in U.S. dollars and Euros (the “Revolving Facility”). The funds obtained from these facilities were utilized to complete the Refinancing, covering fees, premiums, expenses, and other transaction costs. The Term Facility matures seven years after the Closing Date while the Revolving Facility expires and matures five years after the same date.

The Term Facility offers an amortization rate of 1.00% per annum with the option for Borrowers to choose interest accrual between the secured overnight financing rate (“SOFR”) plus 4.50% or the base rate plus 3.50%. Similarly, the Revolving Facility interest accrual options include SOFR or the applicable eurocurrency rate plus 4.00% or the base rate plus 3.00%. The Revolving Facility also provides borrowing capacity for standby letters of credit up to $50 million.

Furthermore, the New Credit Facilities allow for increased commitments up to $85.0 million or 100% of Consolidated Adjusted EBITDA, with certain voluntary prepayments of debt financing. The obligations under the Facilities are guaranteed by various entities including Holdings, U.S. Guarantors, and Dutch Guarantors. The Facilities also entail customary negative covenants and affirmative covenants to govern transactions.

The refinancing will enhance Ranpak Holdings Corp.’s financial position and provide flexibility for future growth opportunities. For more detailed information, the complete Credit Agreement has been attached to the filing.

This significant development reflects Ranpak’s commitment to optimizing its capital structure to support its long-term strategic objectives and enhance shareholder value.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Ranpak’s 8K filing here.

About Ranpak

Ranpak Holdings Corp., together with its subsidiaries, provides product protection solutions and end-of-line automation solutions for e-commerce and industrial supply chains in North America, Europe, and Asia. The company offers protective packaging solutions, such as void-fill protective systems that convert paper to fill empty spaces in secondary packages and protect objects under the FillPak brand; cushioning protective systems, which convert paper into cushioning pads under the PadPak brand; and wrapping protective systems that create pads or paper mesh to wrap and protect fragile items, as well as to line boxes and provide separation when shipping various objects under the WrapPak, Geami, and ReadyRoll brands, as well as cold chain products, which are used to provide insulation for goods.