Tekni-Plex, Inc. Announces Pricing of $485 Million of 9 3/4% Senior Secured Notes

KING OF PRUSSIA, Pa., May 10, 2012 /PRNewswire/ -- Tekni-Plex, Inc. (the "Company") announced today the terms of its offering of $485 million aggregate principal amount of 9 3/4% Senior Secured Notes due 2019 (the "Notes"), which represents an increase of $5 million from the initial offering size.  

The Company will sell $485 million aggregate principal amount of the Notes at a price of 98.756% of the par value.  The Notes will be 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 will also be secured, on a second-priority basis, by the ABL Collateral.  Each subsidiary that guarantees the obligations of the Company under the ABL facility will guarantee 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 also expects to amend its existing asset-based revolving loan facility in conjunction with these transactions.  The amendment is a condition to the consummation of the Notes offering.

The Notes will be 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.