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AIGCAF Provides $100MM Loan to Pratt Paper

August 07, 2013, 07:00 AM

AIG Commercial Asset Finance (AIGCAF) and its affiliates have provided a $100 million senior secured term loan to Pratt Paper (LA), LLC (Pratt), a wholly-owned subsidiary of Pratt Industries, Inc. (Pratt Industries). The loan proceeds were used to refinance existing term debt and to provide additional working capital. 

Pratt Industries is the fifth largest corrugated packaging company in the US and it is the world’s largest, privately-held 100% recycled paper and packaging company. The company has more than 4,000 highly-skilled, green-collar employees dedicated to the environment and to sustainability.  Headquartered in Conyers, Georgia, Pratt was founded in the US more than twenty years ago. Since then, the company has shown dramatic growth in production and revenues. With sophisticated manufacturing facilities in more than twenty states, Pratt’s paper mills recycle more than six million pounds of recovered paper each day.

Gary Byrd, President of Pratt Holdings, says that Pratt Paper has long standing relationships with AIG through its sister companies operating in Australasia. “We have built strong and mutually beneficial relationships with several of AIG’s international insurance companies and we’re certain that we can build a similar relationship with AIGCAF. In particular, we appreciate the responsiveness and broad finance expertise that was demonstrated by AIGCAF as it quickly reviewed our initial request and moved promptly to closing and funding.”

AIGCAF’s Vice President of Direct Originations, Colin Myer, said that AIGCAF’s extensive experience in providing structured financing to capital intensive industries contributed to successfully closing the transaction. “Our initial discussions with Pratt’s senior management revealed that they had a unique structuring request and a very limited timeframe to accomplish their objectives.  We quickly assembled a highly experienced deal team which included AIGCAF’s structuring, credit and legal personnel. By dedicating the team solely to Pratt’s request, we were able to work closely with the company to ensure that we were able to provide Pratt with a solution that fully met the company’s needs for a prompt response and a tailored structure.” 

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