Arnold & Porter Advises Beontag in Connection with Secured Credit Facility from Four-Bank Syndicate

Arnold & Porter advised Beontag and its subsidiary Tags Lux S.a r.l. (as borrower), together with their subsidiaries as guarantors and security providers, in a transaction spanning the Caymans Islands, Luxembourg, Brazil, Italy, France, Sweden, Finland and the United States, in connection with a secured credit facility under English law. The financing was provided by a four-bank syndicate led by Deutsche Bank AG. GLAS acted as the administrative and security agent on the deal, and the lenders were advised by Allen & Overy LLP. Beontag is one of the world’s largest manufacturers of self-adhesives and smart tags (such as digital labels, and labeling technology solutions like RFID and NFC).

The EUR 120,000,000 deal, which closed on January 20, 2023, is a sustainability-linked financing, with potential interest rate reductions based on the borrower’s compliance with performance targets, including relating to women in management, use of certified paper fiber, reduction of greenhouse gas emissions and the sale of sustainable products. The loan was used to repay Beontag Group’s existing financings and for general corporate purposes of its companies.

The Arnold & Porter team included partners Chris Willott and Marc Isaacs, senior associate Bethany Tolentino and associate Valentina Garzon. Internal counsel on the deal were Ana Paula Gaspar Dorea and Raisa de Oliveira Chaves for Beontag.