Advantage Sales & Marketing to launch new loan on Wednesday

By Sara Rosenberg

New York, Oct. 13 – Advantage Sales & Marketing Inc. is scheduled to hold a lender call on Wednesday to launch its new loan transaction, according to a market source.

Last month, the company revealed in a filing with the Securities and Exchange Commission that it has a commitment for $2.5 billion of senior secured credit facilities, split between a $400 million asset-based revolver and a $2.1 billion term loan.

BofA Securities Inc., Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. provided the debt commitment.

Proceeds will be used to refinance existing debt and pay related fees and expenses.

The refinancing is being done in connection with the acquisition of Advantage Sales’ parent company, Advantage Solutions Inc., by Conyers Park II Acquisition Corp., a publicly traded special purpose acquisition company.

The transaction implies an initial enterprise value for Advantage of $5.2 billion or 10.1x its estimated 2021 adjusted EBITDA of $515 million.

Other funds for the transaction will come from a $700 million common stock private placement at $10.00 per share and up to $450 million in cash from Conyers Park’s trust account. Existing private equity partners of Advantage, including CVC Fund VI, Green Equity Investors VI and Bain Capital Private Equity, in addition to rolling over their entire existing stake in the business, are investing an additional $200 million in the company as part of the $700 million common stock private placement.

Net debt is expected to be 3.7x LTM June adjusted EBITDA.

Closing is expected as early as late October, subject to approval by Conyers Park’s stockholders, the expiration of the HSR Act waiting period, the debt financing and other customary conditions.

Advantage Sales is an Irvine, Calif.-based provider of outsourced sales and marketing services to consumer goods manufacturers and retailers.

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