Multi-Color to launch $1.2 billion equivalent term loan on Monday

By Sara Rosenberg

New York, May 31 – Multi-Color Corp. is scheduled to hold a bank meeting on Monday to launch its proposed $1.2 billion U.S. and euro term loan, according to a market source.

Bank of America Merrill Lynch and Deutsche Bank Securities Inc. are the leads on the debt.

Based on the commitment letter, the company is also expected to get a $300 million revolver.

Proceeds will be used to help fund the buyout of the company by Platinum Equity LLC for $50.00 in cash per share and merger with WS Packaging Group, a portfolio company of Platinum Equity. 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, and the company has a commitment for a $650 million senior secured bridge loan and a $740 million senior unsecured bridge loan.

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

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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