Golden Hippo talks $250 million term loan B at Libor plus 850 bps

By Sara Rosenberg

New York, June 17 – Golden Hippo (Altern Marketing LLC) launched on Monday its $250 million six-year first-lien term loan B with price talk of Libor plus 850 basis points with a step-down to Libor plus 800 bps at a leverage level to be announced, a 1% Libor floor and an original issue discount of 98, according to a market source.

The term loan has hard call protection of 102 in year one and 101 in year two.

Amortization on the term loan is 7.5% in years one and two and 10% per annum thereafter, with a bullet at maturity.

The debt has a total net leverage ratio covenant.

The company’s up to $275 million of credit facilities also include an up to $25 million asset-based revolver, the source said.

Barclays and Macquarie Capital (USA) Inc. are the lead arrangers on the deal.

Commitments are due at noon ET on July 1, the source added.

Proceeds will be used to fund the cash consideration to shareholders in connection with the company’s contemplated sale to an Employee Stock Ownership Plan and to pay related fees and expenses.

Total opco leverage is 2.7x.

Golden Hippo is a Woodland Hills, Calif.-based developer and distributor of branded health & wellness and beauty products.

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