UBS and CIBC World Markets are leading a $231 million bank facility backing The Cypress Group's $433 million acquisition of J.W. Childs-owned The Meow Mix Company. The new bank loan will comprise a $30 million revolver, a $176 million term loan and a $25 million second-lien term loan, said a banker, who added that syndication will launch July 30. A bank credit was repotedly chosen rather than a high-yield deal because the company has only one year of audited financials.
Price talk for the revolver and the first-lien loan is at LIBOR plus 31/2%, while talk on the second-lien loan is at LIBOR plus 61/2%, said the banker. Pro forma leverage has been indicated at four times debt-to-EBITDA and total equity represents about 55% of the total capitalization. UBS will be the sole bookrunner and lead arranger on the deal while CIBC has signed up as syndication agent and co-arranger. J.W. Childs tapped UBS last year to lead a $130 million credit in support of its $165 million purchase of Meow Mix from Nestle and Ralston Purina (LMW, 1/02). UBS and Cypress Group officials declined to comment, while a CIBC banker did not return calls. J.W. Childs and Meow Mix officials also did not return calls.