CPM Holdings sets talk on first-and second-lien term loans with launch

By Sara Rosenberg

New York, July 31 - CPM Holdings Inc. released price talk on its $275 million first-lien term loan (Ba3/B+) and $185 million second-lien term loan (Caa1/B) at its bank meeting on Tuesday morning, according to a market source.

The first-lien loan is talked at Libor plus 500 basis points to 525 bps with a 1.25% Libor floor and an original issue discount of 99, and the second-lien loan is talked at Libor plus 900 bps with a 1.25% floor and a discount of 98, the source said.

The first-lien loan has 101 soft call protection for one year and the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $500 million credit facility also provides for a $40 million revolver (Ba3/B+).

Commitments are due on Aug. 13, the source added.

Jefferies & Co. is the lead bank on the deal.

Proceeds will be used to refinance existing high-yield bonds and to fund a distribution to shareholders.

Net leverage will be 2.4 times through the first-lien debt and 4.3 times total, while gross leverage will be 2.8 times through the first-lien and 4.8 times total, the source added.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

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