Primary Products talks $1.06 billion loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, Oct. 6 – Primary Products Finance LLC launched on Wednesday its $1.06 billion seven-year term loan (B1/BB-) with price talk of Libor plus 375 basis points to 400 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months and customary ticking fees.

Barclays, Wells Fargo Securities LLC, Rabobank, BNP Paribas Securities Corp., Goldman Sachs Bank USA, Societe Generale and Stifel are the joint bookrunners on the deal. Barclays is the administrative agent.

Commitments are due at noon ET on Oct. 21, the source added.

Proceeds will be used to help fund the acquisition by KPS Capital Partners LP of a controlling stake in Tate & Lyle plc’s Primary Products business in North America and Latin America and its interests in the Almidones Mexicanos SA de CV and DuPont Tate & Lyle Bio-Products Co. LLC joint ventures (collectively, the Primary Products business) through a newly formed company for an enterprise value of $1.7 billion.

KPS and Tate & Lyle will each own about 50% of the newly formed company.

Closing is expected in the first quarter of 2022, subject to customary closing conditions and approvals.

Primary Products is a provider of nutritive sweeteners, industrial starches, acidulants and other corn-derived products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.