Multi-Color sets price talk on $1.97 billion equivalent term loan B

By Sara Rosenberg

New York, Oct. 13 – Multi-Color Corp. released price talk on its $1.972 billion equivalent U.S. and euro term loan B (B2/B-) with its lender call on Wednesday, according to a market source.

The U.S. portion of the term loan is talked at Libor plus 425 basis points to 450 bps with a 0.5% Libor floor and an original issue discount of 99, and the euro portion of the term loan is talked at Euribor plus 450 bps to 475 bps with a 0% floor and a discount of 99, the source said.

The term loan debt has 101 soft call protection for six months.

Sizes of the U.S. and euro tranches are still to be determined.

BofA Securities Inc., Goldman Sachs Bank USA, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets, UBS Investment Bank and Wells Fargo Securities LLC are the leads on the deal.

Commitments are due at noon ET on Oct. 21, the source added.

Proceeds will be used to help fund the acquisition by Clayton, Dubilier & Rice of Multi-Color from Platinum Equity and Fort Dearborn from Advent International, and merger of the two companies.

The combined company is expected to generate about $3 billion of annual revenue.

Closing is expected by the end of the year, subject to customary conditions.

Multi-Color is a Cincinnati-based label solutions company. Fort Dearborn is an Elk Grove, Ill.-based label supplier to the consumer goods marketplace.

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