Wrigley cuts pricing on $3.6 billion term loan B to Libor plus 350 bps

By Sara Rosenberg

New York, Aug. 8 - Wrigley Co. reduced pricing on its $3.6 billion term loan B to Libor plus 350 basis points from initial talk of Libor plus 375 bps, according to a fund manager.

The term loan B has a 3% Libor floor.

Currently, the original issue discount on the term loan is still being talked at 97, but some are expecting that the discount price will be tightened, possibly as early as Monday - the day that recommitments are due from lenders, the fund manager said.

Wrigley's $4.85 billion credit facility also includes a $250 million revolver and a $1 billion term loan A, with both of these tranches priced in line with original talk at Libor plus 325 bps.

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

Proceeds will be used to help fund the merger of Wm. Wrigley Jr. Co. and Mars Inc., and to provide for ongoing working capital and general corporate purposes.

Mars will pay $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 Co. will be operated as a separate, stand-alone subsidiary of Mars, keeping its headquarters in Chicago. Mars is a McLean Va.-based producer of confectionery, food and petcare products.

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