Schiff Nutrition shifts funds, sets spread at Libor plus 475 bps

By Sara Rosenberg

New York, May 7 - Schiff Nutrition Group Inc. downsized its term loan to $140 million from $150 million and upsized its five-year revolver to $60 million from $50 million, according to a market source.

Also, pricing on the entire $200 million credit facility (B1/B) was firmed up at Libor plus 475 basis points, the wide end of the Libor plus 450 bps to 475 bps talk, the source said.

Furthermore, the maturity on the term loan was shortened to six years from seven years and the original issue discount widened to 98½ from 99, the source continued.

As before, the term loan has a 1.25% Libor floor, and the revolver has no floor and an original issue discount of 99.

Covenants include an interest coverage ratio of 3.50 to 1.00 and a total leverage ratio of 4.25 to 1.00.

Recommitments were due at 5 p.m. ET on Monday and allocations are targeted for later this week, the source concluded.

RBC Capital Markets is the lead arranger on the deal and a joint bookrunner with BMO Capital Markets.

Proceeds from the facility, which actually closed on March 30, were used to fund the $150 million acquisition of Airborne Inc.

Schiff is a Salt Lake City-based nutritional supplement company.

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