Easy Gardener names Green Thumb high bidder in asset sale with $60.5 million bid

By Caroline Salls

Pittsburgh, June 1 - Easy Gardener Products, Ltd. said Green Thumb Acquisition Corp., an affiliate of Bayside Capital, was the highest bidder at an auction for the sale of all of its assets, with a $60.5 million bid, according to a company news release.

Green Thumb was the stalking horse bidder, with an original $57 million stalking horse bid.

Closing is subject to customary conditions.

According to the release, the purchase price includes $23.48 million, plus the principal and interest owed to the company's senior secured revolving and term lenders and minus some fees to be paid.

The company said it intends to use the proceeds to repay 100% of the outstanding principal and unpaid interest due on its senior secured revolving and term lenders.

The balance of the purchase price will be used to pay the $4.28 million owed to holders of two subordinated promissory notes, plus about $1 million of accrued interest.

After paying between $3.1 million and $4.3 million in transaction and other fees, Easy Gardener said there will be between $13.9 million and $15.1 million remaining for distribution to holders of its 9.40% cumulative trust preferred securities due April 15, 2028.

The amount paid to trust preferred shareholders will depend upon court approval of the sale, the amount of transaction and other fees actually incurred in connection with the sale and the Chapter 11 process.

Easy Gardener said no funds will be available for holders of its common equity securities.

A sale hearing is scheduled for Friday.

Easy Gardener, a Waco, Texas-based manufacturer and marketer of consumer lawn and garden products, filed for bankruptcy on April 19 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 06-10396.

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