Diamond Resorts, Amplify Snack Brands complete credit facility transactions

By Sara Rosenberg

New York, Sept. 2 – Diamond Resorts International Inc. announced the conclusion of its buyout for which it obtained an $800 million credit facility, and Amplify Snack Brands Inc. reported that it closed on its acquisition financing $650 million credit facility.

Diamond Resorts wraps

The buyout of Diamond Resorts by Apollo Global Management LLC for $30.25 per share or about $2.2 billion has been completed, according to a news release.

To help fund the transaction, Diamond Resorts got a new $800 million senior secured credit facility that consists of a $100 million five-year revolver and a $700 million seven-year covenant-light term loan B.

Pricing on the term loan B is Libor plus 600 basis points with a 1% Libor floor, and it was sold at an original issue discount of 97.5. The debt has 101 soft call protection for one year.

The revolver is priced at Libor plus 600 bps.

During syndication, the term loan B was downsized from a revised size of $800 million and an initial size of $1.2 billion, the spread was increased from Libor plus 500 bps, the discount widened from revised talk of 98 and initial talk of 99, the call protection was extended from six months, the MFN sunset was removed, and the excess cash flow sweep was revised to 75%, with step-downs to 50% and 25%, from an initial opening level of 50%.

Diamond lead banks

Barclays, RBC Capital Markets LLC, Jefferies Finance LLC and Natixis led Diamond Resorts’ credit facility.

Other funds for the buyout came from $600 million of senior unsecured notes, $500 million of senior secured notes and $1.06 billion of equity.

The senior secured notes offering was added to the transaction in connection with the initial term loan B downsizing and was upsized from $400 million with the second term loan B downsizing.

Diamond Resorts is a Las Vegas-based hospitality and vacation ownership company.

Amplify Snack closes

Amplify Snack Brands closed on its $650 million senior secured credit facility (B2/B) that includes a $50 million five-year revolver and a $600 million seven-year covenant-light term loan, a news release said.

Pricing on the term loan is Libor plus 550 bps with a 1% Libor floor, and it was sold at an original issue discount of 99. The debt has 101 soft call protection for one year.

Revolver pricing is Libor plus 550 bps.

During syndication, the spread on the term loan was increased from Libor plus 525 bps, the call protection was extended from six months, the MFN sunset was eliminated, and the incremental free and clear allowance was reduced to $50 million from $100 million.

Amplify buys Crisps

Proceeds from Amplify’s credit facility was used to help finance the purchase of Crisps Topco Ltd. (Tyrrells) from Investcorp and management for £278 million in cash and about 2.1 million shares of common stock, and to refinance existing debt at Amplify.

Jefferies Finance LLC, Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA led the deal.

Pro forma for the transaction, net leverage is 5.7 times based on last-12-months June 30 pro forma combined adjusted EBITDA of $104.4 million.

Austin, Texas-based Amplify and Herefordshire, England-based Crisps Topco are snacking companies.

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