Multi-Color gets debt commitment for buyout by Platinum Equity

By Sara Rosenberg

New York, Feb. 25 – Multi-Color Corp. has received a commitment for debt financing to help fund its acquisition by Platinum Equity LLC and merger with WS Packaging Group, a portfolio company of Platinum Equity, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. provided the debt commitment.

Under the agreement, Multi-Color is being bought for $50.00 in cash per share. The transaction is valued at $2.5 billion including the assumption of $1.5 billion of debt.

Other funds for the transaction will come from up to $500 million of equity.

Closing is expected by the third quarter, subject to Multi-Color shareholder approval, regulatory clearances and other customary conditions.

In addition, Multi-Color revealed in the filing that it amended its credit agreement on Saturday to revise the definition of “change of control” so that the merger agreement would not constitute an event of default.

Bank of America is the administrative agent on the existing credit agreement.

Multi-Color is a Cincinnati-based label maker. WS Packaging is a Green Bay, Wis.-based provider of labels and packaging solutions.

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