American Seafoods closes deleveraging, refinancing via Bregal Partners

By Susanna Moon

Chicago, Aug. 20 – American Seafoods Group LLC said it has closed a deleveraging recapitalization, sponsored by Bregal Partners, Pacific Seafood Group and other industry investors.

The recapitalization includes refinancing the company’s outstanding debt and a significant equity capital infusion, according to a press release.

The transaction cuts the company’s debt and sets up stable long-term financing, the release said.

Investors included Frank Dulcich, chief executive officer of Pacific Seafood Group, Chris Lischewski, CEO of Bumble Bee Foods, and Amy Humphreys, former CEO of Icicle Seafoods. They now serve on the company’s board.

After the transaction, Bregal holds a significant but non-controlling interest in American Seafoods; equity holders, including members of the management team, also hold a significant interest.

Debevoise & Plimpton LLP is the legal adviser, and Ares Capital Corp. arranged the financing.

Terms of the deal were not disclosed, the release noted.

The refinancing was announced Aug. 7.

Exchange offer

American Seafoods Partners, LLC, the new holding company, said on Aug. 17 that it extended its exchange offer for the $258.4 million of outstanding 15% senior notes due 2017 issued by ASG Consolidated LLC and ASG Finance, Inc.

The exchange offer was extended to 5 p.m. ET on Aug. 18 from 11:59 p.m. ET on Aug. 14. The offer began July 20.

In exchange, the company was offering cash or new units and warrants in the new holding company, according to a previous press release.

As of 11:59 p.m. ET on Aug. 14, investors had tendered for exchange 73.07% of the notes, with $149.6 million of notes for cash and $39.2 million of notes for new units and warrants.

Settlement had been set to occur the business day after the offer ends.

Another $38.6 million of outstanding notes held by ASG investors was to be exchanged for equity in the transaction, the previous press release noted.

In addition, the consent solicitation by ASG Consolidated and ASG Finance ended at 5 p.m. ET on Aug. 14, and there were enough consents to meet the threshold under the PIK notes indenture to approve the proposed amendments, the company had said.

D.F. King & Co., Inc. (877 536-1561, 212 269-5550 or as@dfking.com) is the information and exchange agent.

Seattle-based American Seafoods harvests, processes, prepares and supplies seafood.

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