A Credit Suisse-led arranger group is circulating final terms of the first-lien and second-lien covenant-lite term loan financing backing the buyout of Paragon Films Inc. by Rhone Capital, according to sources. With these changes, recommitments are due today by noon ET.

The financing includes a $348 million first-lien term loan facility comprising a $303 million funded tranche and a $45 million delayed-draw, and a $100 million second-lien term loan.

Pricing for the seven-year first-lien term loan is finalized at L+500, the wide end of the L+475-500 range offered at launch, with a 0.50% Libor floor and an issue price of 99. That works out to a yield to maturity of 5.80%. Lenders are offered six months of 101 soft call protection. The delayed-draw tranche has no ticking fee for the first 45 days (revised from 60 days), then it is set at 50% of the margin from days 46-90, stepping to 100% of the margin thereafter.

The eight-year second-lien term loan pricing is L+775, with a 0.75% floor and an issue price of 97.5. It had launched at L+775-800, with a 0.50% floor and an issue price of 98.5. At final terms, the yield is 9.25%. Call protection was also revised and there are now hard calls at 103, 102 and 101 in years 1-3, respectively.

Credit Suisse is leading the deal and BMO Capital Markets, KKR Capital Markets and RBC Capital Markets are joint lead arrangers.

First-lien ratings are B-/B2, with a 3 recovery rating from S&P Global Ratings. The second-lien is rated CCC/Caa2, with a recovery rating of 6. Corporate ratings are B-/B3, with stable outlooks. The borrower is Secure Acquisition Inc.

In addition to the term loans, the company will have a $45 million revolver due 2026 with a springing first-lien net leverage covenant.

Paragon Films, based in Broken Arrow, Okla., is a manufacturer of ultra high-performance cast stretch films.