Atkins Nutritionals to launch $425 million credit facility on Monday

By Sara Rosenberg

New York, March 8 - Atkins Nutritionals Holdings II Inc. is scheduled to hold a bank meeting at 1:30 p.m. ET in New York on Monday to launch a $425 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facility consists of a $20 million revolver (B1/B-), a $280 million six-year first-lien term loan (B1/B-) and a $125 million 61/2-year second-lien term loan (Caa1/CCC), the source said.

Price talk on the first-lien term loan is Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 850 bps with a 1.25% Libor floor and a discount of 98, the source continued.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The deal has a maximum total leverage ratio.

Proceeds will be used to refinance existing debt and fund a dividend.

Atkins is a Denver-based weight management brand.

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