Paragon Films Inc. has launched the first-lien and second-lien covenant-lite term loan financing backing the buyout of the company by Rhone Capital, according to sources. A lender call is scheduled for today at 10:30 a.m. ET, and commitments are due by noon ET on Dec. 14.

The financing includes a $345 million first-lien term loan facility comprising a $300 million funded tranche and a $45 million delayed-draw, and a $100 million second-lien term loan.

Price talk for the seven-year first-lien term loan is L+475-500, with a 0.50% Libor floor and an issue price of 99. That works out to a yield to maturity of 5.54%-5.80%. Lenders are offered six months of 101 soft call protection. The delayed-draw tranche has no ticking fee for the first 60 days, then it is set at 50% of the margin from days 61-120, stepping to 100% of the margin thereafter.

The eight-year second-lien term loan is talked at L+775-800 with a 0.50% floor and an OID of 98.5. At talk, the yield is 8.79%-9.06%. There are hard calls at 102 and 101 in years one and two, 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.

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.