Knowlton talks $525 million term loan at Libor plus 375-400 bps

By Sara Rosenberg

New York, Nov. 27 – Knowlton Development Corp. launched on Tuesday its $525 million seven-year first-lien term loan with price talk of Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $600 million of credit facilities also include a $75 million five-year revolver.

UBS Investment Bank, Guggenheim and Jefferies LLC are the joint lead arrangers on the deal.

Commitments are due at the end of the day on Dec. 11, the source added.

Proceeds will be used to help fund the buyout of the company by Cornell Capital.

Initially, the company was also expected to get a $160 million second-lien term loan, but that loan was replaced by equity due to oversubscription on the equity side.

Knowlton Development is a Quebec-based manufacturer of health and beauty-care products.

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