Arctic Glacier to launch $225 million credit facility on Thursday

By Sara Rosenberg

New York, June 27 - Arctic Glacier USA Inc. is scheduled to hold a bank meeting at 10 a.m. ET on Thursday to launch a proposed $225 million credit facility (B), according to a market source.

Credit Suisse Securities (USA) LLC is the bookrunner on the deal. Jefferies & Co. is the syndication agent.

The facility consists of a $25 million five-year revolver and a $200 million six-year first-lien term loan, the source said.

Proceeds will be used to help fund the buyout of the company by H.I.G. Capital.

Other funds will come from $85 million of mezzanine debt, the source added.

Closing is expected by July 31, subject to approval of the U.S. Bankruptcy Court for the District of Delaware, pre-merger clearance in the U.S. and the satisfaction of certain customary conditions.

With the buyout, Arctic Glacier's existing secured lenders will be paid in full, and proceeds of the sale are expected to be sufficient to pay all of its remaining known creditors and may be enough to permit a distribution to its unitholders after all creditor claims have been satisfied.

Arctic Glacier is a Winnipeg-based producer, marketer and distributor of packaged ice.

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