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Primary Products sets $1.06 billion term loan at Libor plus 400 bps
By Sara Rosenberg
New York, Oct. 22 – Primary Products Finance LLC firmed pricing on its $1.06 billion seven-year term loan (B1/BB-/BB+) at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, according to a market source.
Also, the pricing step-downs and initial public offering reduction were removed from the term loan, the original issue discount was set at 99, the wide end of the 99 to 99.5 talk, and the 101 soft call protection was extended to one year from six months, the source said.
In addition, changes were made to documentation.
The term loan still has a 0.5% Libor floor.
Ticking fees on the term loan are half the margin from days 31 to 60 and the full margin thereafter.
Barclays, Wells Fargo Securities LLC, Rabobank, BNP Paribas Securities Corp., Goldman Sachs Bank USA, Societe Generale and Stifel are the joint bookrunners on the deal. Barclays is the administrative agent.
Final commitments were scheduled to be due at 5 p.m. ET on Friday, the source added.
Proceeds will be used to help fund the acquisition by KPS Capital Partners LP of a controlling stake in Tate & Lyle plc’s Primary Products business in North America and Latin America and its interests in the Almidones Mexicanos SA de CV and DuPont Tate & Lyle Bio-Products Co. LLC joint ventures (collectively, the Primary Products business) through a newly formed company for an enterprise value of $1.7 billion.
KPS and Tate & Lyle will each own about 50% of the newly formed company.
Closing is expected in the first quarter of 2022, subject to customary closing conditions and approvals.
Primary Products is a provider of nutritive sweeteners, industrial starches, acidulants and other corn-derived products.
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