Prestige Brands Holdings Inc. increased size of term loan
According to a person with knowledge of the transaction Prestige Brands Holdings Inc. increased size of term loan it’s seeking to finance the purchase of 17 over-the-counter-medicine brands from the GlaxoSmithKline Plc from $620 million to $660 million. The person said that the debt will now pay interest at 4 percentage points more than London interbank offered rate, down from 4.5 percentage points initially offered. Because the terms are private, the person declined to be identified. The floor on the benchmark would remain unchanged at 1.2%.
The person said Prestige Brands proposes to sell the loan at 98.5 cents on dollar, compared with 98 cents initially proposed, boosting the yield to investors and reducing proceeds for the company. The person said the lenders are being offered one-year soft-call protection of 101 cents. It is meaning Prestige will have to pay 1 cent more than the face value to refinance debt during the first year. According to data compiled by Bloomberg, New York-based Company the Irvington also seeks $50 million asset-based revolving line of credit due in five years.
The person said Royal Bank of Canada and Citigroup Inc., Morgan Stanley is arranging the financing for maker of personal-care products, over-the-counter drugs and household cleaning. Lenders must submit commitments in New York by noon tomorrow. The person said that Prestige Brands sold $250 million of eight-year, 8.125 percent notes.
