| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for Applica Pet Products LLC > News item |
Applica Pet launches $325 million credit facility at Libor plus 500 bps
By Sara Rosenberg
New York, July 1 - Applica Pet Products LLC launched both tranches under its $325 million credit facility (B1/BB) on Tuesday morning with price talk of Libor plus 500 basis points, according to a market source.
Tranching on the deal is comprised of a $25 million revolver and a $300 million term loan.
The term loan is being offered to investors at an original issue discount of 98 and carries a 3.25% Libor floor, the source said.
Credit Suisse and GE Capital are the lead banks on the deal, with Credit Suisse the left lead.
Proceeds will be used to help fund Salton Inc.'s acquisition of United Pet Group from Spectrum Brands Inc.
Salton is buying the business for $692.5 million in cash, plus additional consideration in the form of $98 million of Spectrum's variable-rate toggle senior subordinated notes due 2013 and $124.5 million of Spectrum's senior subordinated notes due Feb. 1, 2015, in each case taking into account the principal amount and any accrued interest.
Other acquisition financing will come from equity provided by Harbinger Capital Partners, Salton's controlling stockholder.
As part of the investment, Harbinger Capital Partners will contribute the Spectrum notes to Salton.
United Pet Group, which markets and manufactures pet supplies for fish, dogs, cats, birds and other small domestic animals, will operate as a standalone business following the acquisition.
Applica Pet will function as the acquisition subsidiary for United Pet Group and is a wholly owned subsidiary of Salton, a Miramar, Fla.-based marketer and distributor of small household appliances.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.