CPM Acquisition increases sizes of first- and second-lien term loans

By Sara Rosenberg

New York, July 19 – CPM Acquisition Corp. upsized its incremental covenant-light first-lien term loan B due April 2022 to $55 million from $50 million and its covenant-light second-lien term loan due April 2023 to $120 million from $110 million, according to a market source.

The first-lien term loan is talked at Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99.75, and the second-lien term loan is talked at Libor plus 825 bps with a 1% Libor floor and a discount of 99.5.

Included in the first-lien term loan is 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 103 in year one and 101 in year two and no amortization.

Morgan Stanley Senior Funding Inc. and BMO Capital Markets Corp. are the joint lead arrangers and joint bookrunners on the now $175 million in senior secured term loans, up from $160 million. BMO is the administrative agent.

Recommitments/consents were scheduled to be due at 5 p.m. ET on Wednesday, the source said. The original commitments/consents deadline had been set for noon ET on Thursday.

Consenting first-lien term loan lenders are being offered a 25 bps amendment fee.

Proceeds will be used to repay existing debt, fund a dividend to shareholders, which was increased with the term loan upsizings, and pay related fees, the source added.

CPM is a supplier of process equipment used for oilseed processing and animal feed production.

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