Albaugh increases term loan B amount to $350 million

By Sara Rosenberg

New York, Dec. 8 – Albaugh LLC upsized its seven-year covenant-light term loan B to $350 million from $325 million, according to a market source.

Pricing on the loan is Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99.75.

On Thursday afternoon, the spread on the term loan firmed at the low end of the Libor plus 350 bps to 375 bps talk and the discount was tightened from 99.5.

The term loan has 101 soft call protection for six months.

The company’s now $450 million of credit facilities, up from $425 million, also include a $100 million five-year revolver.

HSBC Securities (USA) Inc. is the lead bank on the deal.

Commitments continued to be due at 1 p.m. ET on Friday.

Proceeds will be used to refinance existing debt. The incremental funds from the term loan B will be used for general corporate purposes, including repaying debt, which comprise of drawn local working capital lines, the source added.

The upsize will be leverage neutral.

Albaugh is an Ankeny, Iowa-based producer of generic crop protection products.

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