Wellness Pet shifts funds between first- and second-lien term loans

By Sara Rosenberg

New York, Dec. 11 – Wellness Pet Food Holdings Co. Inc. (Woof Intermediate Inc.) upsized its seven-year first-lien term loan to $750 million from $720 million and downsized its eight-year second-lien term loan to $235 million from $265 million, according to a market source.

Also, pricing on the first-lien term loan was reduced to Libor plus 375 basis points from Libor plus 425 bps and pricing on the second-lien term loan was trimmed to Libor plus 725 bps from Libor plus 800 bps, the source said.

Furthermore, original issue discount talk on the first-lien term loan was changed to a range of 99 to 99.5 from a range of 98.5 to 99, and then firmed later in the day at 99.5, and the discount on the second-lien term loan was revised to 99 from talk in the range of 98 to 98.5.

As before, the first-lien term loan has a 0.75% Libor floor and 101 soft call protection for six months, and the second-lien term loan has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

J.P. Morgan Securities LLC, BMO Capital Markets, Barclays and Golub are the leads on the $985 million of term loans.

Proceeds will be used to help fund the buyout of the company by Clearlake Capital Group LP from Berwind Corp.

Wellness Pet is a Tewksbury, Mass.-based supplier of pet food and treats.

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