Pro Mach launches $405 million term loan at Libor plus 425-450 bps

By Sara Rosenberg

New York, Oct. 7 – Pro Mach Inc. launched on Tuesday its $405 million seven-year covenant-light first-lien term loan with price talk of Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $465 million credit facility (B2) also includes a $60 million five-year revolver.

Commitments are due on Oct. 16, the source added.

Goldman Sachs Bank USA and GE Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by AEA Investors LP from the Jordan Co.

Other funds for the transaction will come from $225 million of eight-year second-lien mezzanine notes.

Closing is expected in the fourth quarter, subject to customary conditions.

Pro Mach is a Loveland, Ohio-based provider of integrated packaging and processing products and solutions for food, beverage, consumer goods, pharmaceutical and other diverse companies.

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