Arctic Glacier sets pricing for $200 million six-year term loan

By Paul A. Harris

Portland, Ore., June 28 - Arctic Glacier USA Inc. set pricing for its $200 million six-year first-lien term loan at a 675 basis points spread to Libor with a 1.5% Libor floor at 97 to yield 9%, an informed source said on Thursday.

The deal features a one-year soft call at 101, which is in effect only if the deal is repriced.

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

The $225 million credit facility also has a $25 million five-year revolver.

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, Man.-based producer, marketer and distributor of packaged ice.

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