JPMorgan, Bank of America and Citigroup have committed to providing a $2.1 billion credit facility to Scotts Miracle-Gro Co. for a planned recapitalization. The company announced last Tuesday it plans to repurchase its existing $200 million of 6.625% senior subordinated notes in a Dutch auction tender offer commencing in January and pay a dividend to shareholders, according to a filing with the Securities and Exchange Commission.
The debt financing is expected to include a revolver and term loan, but further details could not be determined. The company is also planning to return $500 million to shareholders in a special one-time cash dividend. Moody's Investors Service placed Scotts corporate family rating and senior subordinated ratings under review for possible downgrade following the announcement. Calls to a Scotts spokesman were not returned.