Berry Global, Glatfelter announces proposed offering of senior secured notes

Berry Global Group (BERY) and Glatfelter Corporation (GLT) announced that Berry’s indirect, wholly-owned subsidiary, Treasure Escrow Corporation, a Delaware corporation, plans to issue $500,000,000 of senior secured notes due 2031. The proceeds from the offering are intended to be used to fund a portion of the cash distribution to Berry Global, Inc., a Delaware corporation and wholly-owned subsidiary of Berry, by Treasure Holdco, Inc., a Delaware corporation and an indirect, wholly-owned subsidiary of Berry, in respect of the previously announced combination of Berry’s Health, Hygiene and Specialties Global Nonwovens and Films business with Glatfelter, in a Reverse Morris Trust transaction to repay certain existing indebtedness of Glatfelter and to pay certain fees and expenses. As previously disclosed, upon closing of the Transaction, the combined company will be renamed Magnera Corporation. The issuance of the Notes would be issued in lieu of the same amount of debt previously intended to be provided under Spinco’s new credit facilities and such debt would be assumed by Magnera, in conjunction with and assuming closing of the Transaction. Unless the Transaction is consummated concurrently with the closing of the offering, all proceeds of the offering will be deposited into a segregated escrow account, together with any additional amounts necessary to redeem the Notes, until the obligations of the Issuer under the Notes are ultimately assumed by Magnera, and certain other conditions are satisfied in connection with the consummation of the Transaction. Amounts held in the escrow account will be pledged for the benefit of the holders of the Notes, pending the release of such funds in connection with the consummation of the Transaction.