CPM Holdings launches $325 million credit facility to investors

By Sara Rosenberg

New York, March 27 – CPM Holdings Inc. held a call at 1 p.m. ET on Friday to launch a $325 million senior secured credit facility, according to a market source.

Morgan Stanley Senior Funding Inc. and Jefferies Finance LLC are the joint bookrunners on the deal and joint lead arrangers with Rabobank and ING.

The facility consists of a $30 million revolver and a $295 million seven-year term loan B, the source said.

Price talk on the term loan B is Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 99, the source continued.

Included in the term loan B is 101 soft call protection for six months and amortization of 1% per annum.

Proceeds will be used with a privately placed second-lien term loan to refinance existing debt and pay a distribution to shareholders.

Commitments are due on Thursday, the source added.

CPM is a Waterloo, Iowa-based supplier of process equipment used for oilseed processing and animal feed production.

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