Wrigley pro rata talked at Libor plus 325 bps, term B talked at Libor plus 375 bps

By Sara Rosenberg

New York, July 21 -Wrigley Co. released price talk on its proposed $5.7 billion credit facility ahead of the Wednesday bank meeting that will launch the deal, with the revolver and the term loan A talked at Libor plus 325 basis points, and the term loan B talked at Libor plus 375 bps, according to a market source.

The term loan B has a 3% Libor floor and will be offered to investors at an original issue discount of 97, the source said.

Currently, the revolver is sized at $250 million, the term loan A is sized at $1 billion and the term loan B is sized at $4.45 billion.

Goldman Sachs is the lead arranger on the deal, with Barclays, GE Capital, Rabobank and Sumitomo the co-arrangers.

Proceeds from the credit facility will be used to help fund the merger of Wm. Wrigley Jr. Co. and Mars Inc., the repayment or refinancing of certain Wrigley debt and to provide for ongoing working capital and general corporate purposes.

Mars is paying $80 cash for each share of Wrigley common stock and class B common stock in a transaction valued at about $23 billion.

Confections company Wrigley will be operated as a separate, stand-alone subsidiary of Mars, keeping its headquarters in Chicago.

Closing on the transaction is expected to take place later this year or in the first quarter of 2009, subject to customary conditions, including stockholder approval and certain governmental regulatory clearances.

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