Wm. Wrigley downsizes term loans by $250 million to $1.85 billion

By Sara Rosenberg

New York, Dec. 16 - Wm. Wrigley Jr. Co. decreased its new term loans to $1.85 billion from $2.1 billion, according to sources.

The funds came out of the five-year term loan, which was reduced to $850 million from $1.1 billion, sources said.

In addition, the original issue discount on the five-year term loan was tightened to 99½ from 991/4, sources added, but the spread was left unchanged at Libor plus 300 basis points.

As before, the company is also getting a $1 billion three-year term loan priced at Libor plus 275 bps with an original issue discount of 991/2.

Both term loans have 101 soft call protection for one year.

Proceeds from the new term loans, along with new unsecured debt and cash on hand, will be used to refinance existing term loan B borrowings.

As a result of the term loan downsizing, the company will now get 1.15 billion of notes, up from $1. billion, and use an additional $100 million in cash on hand.

In connection with this new deal, Wrigley is amending its credit facility to allow for the unsecured notes and the new term loans, and to allow for the refinancing of the existing revolver and term loan A, and the new term loans at a later date with pari passu bonds or unsecured bonds or loans.

JPMorgan and Goldman Sachs are the lead arrangers on the deal, with JPMorgan running the amendment process.

Wm. Wrigley is a Chicago-based confections company.

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