Lion Capital has turned to UBS to provide financing for its $625 million acquisition of American Safety Razor Co. from J.W. Childs Associates. Launched last week, the credit facility consists of a six-year, $35 million first-lien revolver; a seven-year, $225 million first-lien term loan and a seven-and-a-half-year, $175 million second-lien facility. Price talk for the revolver and term loan is LIBOR plus 2 1/2-2 3/4% and price talk on the second lien is LIBOR plus 6-6 1/2%. A $35 million holdco mezzanine loan facility is being offered at 13-13 1/2% and will be a PIK for the first five years and become cash pay thereafter.
J.W. Childs tapped UBS last year to pay a $92 million dividend. The deal consisted of a five-year, $25 million revolver, a $200 million first-lien term loan and a seven-and-a-half year, $87.5 million second-lien loan. Pricing was LIBOR plus 3% on the first lien and LIBOR plus 6 3/4% on the second (LMW, 2/11/2005).
Cedar Knolls, N.J.-based American Safety Razor is a global manufacturer of private label/value wet shaving razors and blades, and industrial, specialty and medical blades. Calls to American Safety Razor and Lion Capital were not returned. A representative from J.W. Childs could not be reached.