AgroFresh shops $275 million term loan at Libor plus 600-625 bps

By Sara Rosenberg

New York, July 8 – AgroFresh Solutions Inc. is taking its $275 million term loan (B3/B) due December 2024 at Libor plus 600 basis points to 625 bps with a 1% Libor floor and an original issue discount of 96 to 97, according to a market source.

BMO Capital Markets and Deutsche Bank Securities Inc. are the leads on the deal.

Proceeds will be used to refinance/amend and extend an existing term loan due July 2021.

The loan transaction is a condition of the company’s agreement to sell $150 million of newly issued convertible preferred stock to an affiliate of Paine Schwartz Partners LLC.

The preferred stock investment will be used to repay a portion of AgroFresh’s existing debt.

On a pro-forma basis for the 12 months ended March 31, the company’s net debt-to-adjusted EBITDA ratio will decline to 3.8x from 5.8x.

Closing is expected early in the third quarter.

AgroFresh is a Philadelphia-based provider of solutions, technologies and services to enhance the quality and extend the shelf life of fresh produce.

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