AGRO Merchants launches first-lien term loan at Libor plus 400 bps

By Sara Rosenberg

New York, Nov. 2 – AGRO Merchants Global LP launched on Thursday its $350 million seven-year covenant-light first-lien term loan B (B3/B-) with price talk of Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The first-lien term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

The company is also getting $90 million second-lien term loan (Caa2/CCC) that was privately placed.

Morgan Stanley Senior Funding Inc., Barclays and Deutsche Bank Securities Inc. are the lead banks on the senior secured deal.

Commitments are due on Nov. 16, the source added.

Proceeds will be used to refinance the existing capital structure, fund an acquisition and pay related fees and expenses.

AGRO Merchants is an Alpharetta, Ga.-based owner and operator of temperature-controlled warehouse and distribution space.

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