Brook + Whittle flexes $478 million term loan to Libor plus 400 bps

By Sara Rosenberg

New York, Dec. 9 – Brook + Whittle (Merion Rose Merger Sub Inc.) lowered pricing on its $478 million seven-year first-lien term loan (B2/B-), of which $100 million is a delayed-draw tranche, to Libor plus 400 basis points from Libor plus 450 bps, according to a market source.

Also, the 25 bps step-down at 4.75x first-lien net leverage was removed from the first-lien term loan, the source said. The debt still has a 25 bps step-down upon an initial public offering.

In addition, the ticking fees on the delayed-draw first-lien term loan were changed to half the margin from days 46 to 90 and the full margin thereafter, from half the margin from days 61 to 120 and the full margin thereafter.

As before, the first-lien term loan has a 0.5% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

The company’s $697 million of credit facilities also include a $50 million revolver (B2/B-) and a $169 million privately placed second-lien term loan.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Jefferies LLC and BMO Capital Markets are the lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Genstar Capital from TruArc Partners.

Brook + Whittle is a Guilford, Conn.-based manufacturer of pressure sensitive labels, shrink sleeves, flexible packaging and heat transfer labels.

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