Blue Buffalo repays $382 million borrowings using new term loan

By Marisa Wong

Morgantown, W.Va., May 31 – Blue Buffalo Pet Products Inc. repaid in full about $382 million of borrowings under its credit agreement dated Aug. 8, 2012 with Citibank, NA as administrative agent, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The credit agreement was repaid and terminated on May 25, the closing date of Blue Buffalo’s new credit agreement.

As previously announced, the company entered into a new $400 million seven-year senior secured term loan B and $120 million revolver priced at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, subject to a 0% Libor floor.

There is a 25-bps pricing step-down when first-lien gross leverage is less than or equal to 1 time or the company achieves investment-grade corporate and facility ratings.

The revolver includes a $10 million sublimit for letters of credit.

The term loan amortizes at 1% per annum and has 101 soft call protection for six months.

In addition, the facility includes a maximum consolidated first-lien net leverage ratio covenant of 4 times, as previously reported.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the lead arrangers on the deal.

Blue Buffalo is a Wilton, Conn.-based pet food company.

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