CPM Holdings upsizes first-lien loan, downsizes second-lien loan

By Sara Rosenberg

New York, Aug. 14 - CPM Holdings Inc. upsized its first-lien term loan to $285 million from $275 million and downsized its second-lien term loan to $100 million from $185 million, according to a market source.

Pricing on the first-lien term loan firmed at Libor plus 500 basis points, the tight end of the Libor plus 500 bps to 525 bps talk, the source said.

As before, the first-lien term loan has a 1.25% Libor floor, as well as 101 soft call protection for one year, and is being offered at an original issue discount of 99.

Pricing on the second-lien loan was left unchanged at Libor plus 900 bps with a 1.25% floor and a discount of 98, and the call protection remained at 103 in year one, 102 in year two and 101 in year three.

The company's now $425 million credit facility, down from $500 million, also provides for a $40 million revolver.

Allocations are expected to go out on Thursday, 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.

As a result of the reduction of the credit facility, the size of the dividend being paid has been reduced.

Leverage through the first-lien loan is around 2.9 times, versus 2.4 times prior to the changes, and total leverage is about 3.9 times, down from 4.8 times previously.

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

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