Milk Specialties to launch $230 million credit facility on Tuesday

By Sara Rosenberg

New York, Oct. 26 - Milk Specialties Global is planning for a Tuesday bank meeting to launch a proposed $230 million credit facility, according to a market source.

RBC Capital Markets LLC is the lead bank on the deal.

The facility consists of a $25 million revolver, a $145 million first-lien term loan and a $60 million second-lien term loan, the source said.

Early unofficial guidance is circulating on the first-lien term loan at Libor plus 650 basis points with a 1.5% Libor floor and an original issue discount of 97, and on the second-lien term loan at Libor plus 1,050 bps with a 1.5% floor and a discount of 96, the source added.

Proceeds will be used to help fund the buyout of the company by HM Capital from Stonehenge Partners Inc.

Leverage through the first-lien is 3.7 times and through the second-lien is 5.2 times.

Milk Specialties is a Carpentersville, Ill.-based manufacturer of nutrition products.

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