Bulletin: ProAmpac PG Intermediate LLC's Proposed $220 Million First-Lien Term Loan Add-On Is Credit Neutral

This report does not constitute a rating action. BOSTON (S&P Global Ratings) Aug. 5, 2025--S&P Global Ratings today said that ProAmpac PG Intermediate LLC ?s (B-/Stable/--) proposed $220 million fungible first-lien term loan will slightly reduce leverage. ProAmpac intends to use the proceeds of the loan, issued by ProAmpac PG Borrower LLC , with an $80 million draw on its revolving credit facility and $125 million of rollover equity to acquire an e-commerce specialty packaging supplier. The acquisition will expand ProAmpac?s market presence within the e-commerce segment. ProAmpac projects roughly $12 million in synergies from sourcing internalization and raw material procurement savings, which we believe will be achievable over the near term. As a result of the rollover equity and

...August 5, 2025 This report does not constitute a rating action. BOSTON (S&P Global Ratings) Aug. 5, 2025--S&P Global Ratings today said that ProAmpac PG Intermediate LLC's (B-/Stable/--) proposed $220 million fungible first-lien term loan will slightly reduce leverage. ProAmpac intends to use the proceeds of the loan, issued by ProAmpac PG Borrower LLC, with an $80 million draw on its revolving credit facility and $125 million of rollover equity to acquire an e-commerce specialty packaging supplier. The acquisition will expand ProAmpac's market presence within the e-commerce segment. ProAmpac projects roughly $12 million in synergies from sourcing internalization and raw material procurement savings, which we believe will be achievable over the near term. As a result of the rollover equity and EBITDA contribution of the acquired company, we expect the ProAmpac can reduce leverage to about 7.5x in 2026 following integration. Our ratings and outlook on ProAmpac are unaffected. The stable...

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