Tekni-Plex, Inc. Announces Closing of $485 Million Senior Secured Notes Offering

KING OF PRUSSIA, Pa., May 24, 2012 /PRNewswire/ -- Tekni-Plex, Inc. (the "Company") announced today the closing of its offering of $485 million aggregate principal amount of 9.750% Senior Secured Notes due 2019 (the "Notes"). 

The Company sold $485 million aggregate principal amount of the Notes at a price of 98.756% of the par value.  The Notes are guaranteed by certain of the Company's domestic subsidiaries and secured by a first-priority lien on substantially all of the existing and future assets of the Company and the guarantors, other than existing and future accounts receivable, inventory and certain other assets, which secure the Company's asset-based revolving loan facility on a first-priority basis (the "ABL Collateral").  The Notes are also secured, on a second-priority basis, by the ABL Collateral.  Each subsidiary that guarantees the obligations of the Company under the ABL facility also guaranteed the Notes.

The Company intends to use the net proceeds from the offering of the Notes, together with cash on hand and the proceeds of a $50 million equity offering to its existing equity holders, to repay its existing term loan and its currently outstanding 8.75% Senior Secured Notes due 2013, and to pay related fees and expenses. The Company today issued a notice of redemption for the 8.75% Senior Secured Notes.  The redemption date will be June 25, 2012.  The Company today also entered into an amendment to its existing asset-based revolving loan facility in conjunction with these transactions. 

In connection with these transactions, Standard & Poors affirmed the Company's B- rating and revised its outlook from negative to positive.  Moody's upgraded the Company's rating from Caa2 to Caa1 and revised its outlook from negative to stable. 

The Notes were offered and sold to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act") and outside the United States in reliance on Regulation S under the Securities Act.

The Notes have not been registered under the Securities Act, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws. This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the Notes, nor shall there be any offer, solicitation or sale of any Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Tekni-Plex, Inc.

Tekni-Plex, Inc. is a global manufacturer of a range of technologically sophisticated and value added packaging products primarily serving the healthcare, food and consumer industries.

Contact:
Graham Sayers
Executive Vice President and Chief Financial Officer
(484) 690-1538

SOURCE Tekni-Plex, Inc.