Albaugh flexes $300 million term loan B to Libor plus 500 bps

By Sara Rosenberg

New York, May 20 - Albaugh Inc. increased pricing on its $300 million seven-year term loan B to Libor plus 500 basis points from revised talk of Libor plus 425 bps to 450 bps and initial talk of Libor plus 350 bps to 375 bps, according to a market source.

Also, the original issue discount on the term loan widened to 98 from revised talk of 99 and initial talk of 991/2, the source said.

In addition, the call protection was changed to a hard call of 102 in year one and 101 in year two from revised talk of 101 soft call protection for one year and initial talk of 101 soft call protection for six months.

Furthermore, the amortization on the term loan was sweetened to 5% per annum from 1%, the source continued.

The term loan still has a 1% Libor floor.

Earlier in syndication, a total net leverage covenant was added to the previously covenant-light term loan and the MFN sunset provision was eliminated, setting the 50 bps MFN for life.

Along with the term loan, the company's credit facility (B1/BB-) includes an $85 million five-year revolver that was adjusted from an amount of up to $100 million, the source added.

Recommitments were due on Tuesday.

HSBC Securities (USA) Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Albaugh is an Ankeny, Iowa-based producer of generic crop protection products.

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