Multi-Color shifts funds between U.S. and euro loans, updates pricing

By Sara Rosenberg

New York, June 17 – Multi-Color Corp. upsized its U.S. seven-year term loan to $640 million from $600 million and downsized its euro seven-year term loan to $560 million equivalent from $600 million equivalent, according to a market source.

Also, pricing on the U.S. term loan firmed at Libor plus 450 basis points, the high end of the Libor plus 425 bps to 450 bps talk, and pricing on the euro term loan was increased to Euribor plus 500 bps from talk in the range of Euribor plus 425 bps to 450 bps, the source said.

Both term loans still have a 0% floor, an original issue discount of 99 and 101 soft call protection for six months.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Barclays, BMO Capital Markets, Credit Suisse Securities (USA) LLC, Houlihan Lokey and Morgan Stanley Senior Funding Inc. are the leads on the debt, with Bank of America the left lead on the U.S. piece and Deutsche the left lead on the euro piece.

Recommitments were scheduled to be due at 1 p.m. ET on Monday, the source added.

The company’s $1.5 billion equivalent of senior secured credit facilities (B2/B) also include 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 $1.39 billion of notes.

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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