Alphia ups spread on $640 million term loan B to SOFR plus 500 bps

By Sara Rosenberg

New York, Oct. 2 – Alphia Inc. increased pricing on its $640 million seven-year term loan B (B2/B) to SOFR plus 500 basis points from SOFR plus 450 bps and removed pricing step-downs, according to a market source.

In addition, the original issue discount on the term loan was changed to 95 from talk in the range of 97 to 98 and the 101 soft call protection was extended to one year from six months, the source said.

Furthermore, lender friendly modifications were made to the free and clear basket, to pari passu, junior, and unsecured debt or non-collateral debt prongs, to MFN, to the excess cash flow sweep and to the asset sale sweep.

Also, lender friendly changes were made on incurrence, investments, restricted payments, restricted debt payments, EBITDA definition and consolidated total debt definition.

Lastly, the company is now required to hold quarterly lender calls and management discussion and analysis, and Serta, Chewy and J Crew protections were added, the source continued.

The term loan still has a 0.5% floor and amortization of 1% per annum.

Goldman Sachs Bank USA, Jefferies LLC, BMO Capital Markets, Citizens, Deutsche Bank Securities Inc., Morgan Stanley Senior Funding Inc., Rabobank, SMBC and Wells Fargo Securities LLC are the arrangers on the deal. Goldman Sachs is the agent.

Recommitments were scheduled to be due at 5 p.m. ET on Monday, the source added.

Proceeds will be used to help fund the buyout of the company by PAI Partners from J.H. Whitney Capital Partners.

Closing is subject to customary conditions, including the receipt of certain regulatory approvals.

Alphia is a Denver-based contract manufacturer of dry pet food and treats.

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