Multi-Color details debt commitment structure for labels division buy

By Sara Rosenberg

New York, July 19 – Multi-Color Corp. has received a commitment for $1.05 billion of senior secured credit facilities and an up to €400 million senior unsecured bridge facility to help fund its acquisition of the labels division of Constantia Flexibles GmbH, to refinance an existing revolver and for general corporate purposes, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Bank of America Merrill Lynch and Citigroup Global Markets Inc. are the lead banks on the debt.

The credit facilities consist of a $400 million revolver, a $250 million term loan A and a $400 million term loan B.

The bridge facility will be reduced through the issuance of notes or incurrence of term loans, the filing said.

In a conference call on Monday, company officials said they planned to get a revolver, a term loan A, a term loan B and bonds for the acquisition.

The transaction purchase price is about $1.3 billion and will be settled in cash and 3.4 million shares of Multi-Color stock issued to Constantia Flexibles at a price of $75.00 per share.

Pro forma leverage for the transaction will be around 5 times net debt to EBITDA.

The company anticipates bringing leverage down to less than 4 times in the medium term.

Closing is expected in the fiscal quarter ending Dec. 31, subject to customary conditions.

Multi-Color is a Cincinnati-based label maker.

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