Bioplan/Arcade pulls $585 million facility, targets September relaunch

By Sara Rosenberg

New York, Aug. 14 – Bioplan/Arcade Marketing withdrew its $585 million credit facility from market but is planning on bringing the deal back in September, according to a market source.

The facility consists of a $65 million revolver (B2/B+), a $375 million seven-year first-lien covenant-light term loan (B2/B+) and a $145 million eight-year second-lien covenant-light term loan (Caa2/B-).

Talk on the first-lien term loan was Libor plus 450 basis points with a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for six months, and talk on the second-lien term loan was Libor plus 800 bps with a 1% Libor floor, a discount of 98 and call protection of 102 in year one and 101 in year two.

The term loans had a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

Recently, pricing on the first-lien term loan has been increased from talk of Libor plus 400 bps to 425 bps and the discount widened from 99, and pricing on the second-lien loan was raised from talk of Libor plus 750 bps to 775 bps and the discount was modified from 99.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are the lead banks on the deal, with Goldman the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien loan.

Proceeds will be used to fund the merger of the two companies.

Bioplan is owned by Ileos, which is owned by Oaktree Capital Management LP, and Arcade Marketing is owned by Visant Corp., which is controlled by KKR and DLJ Merchant Banking.

Under the agreement, Oaktree would retain a 75% ownership interest and KKR/DLJ Merchant would retain a 25% ownership interest in the combined company.

Closing is expected by the beginning of the fourth quarter, subject to customary conditions and regulatory reviews.

Bioplan is a provider of unit-dose sampling and promotional turnkey solutions. Arcade Marketing is a New York-based provider of sampling solutions for the fragrance, cosmetics and skincare segments.

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