Arctic Glacier ups spread on $225 million loan to Libor plus 700 bps

By Sara Rosenberg

New York, July 16 - Arctic Glacier USA Inc. increased pricing on its $225 million credit facility (B1/B) to Libor plus 700 basis points from Libor plus 675 bps, according to a market source.

The 1.5% Libor floor and original issue discount of 97 were left unchanged, the source said.

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

The term loan still has 101 soft call protection for one year.

Recommitments are due at 5 p.m. ET on Tuesday and allocations are expected later this week, the source added.

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

Proceeds will be used to help fund the buyout of the company by HIG Capital.

Other funds will come from $85 million of mezzanine debt.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.