UBS and Lehman Brothers are leading a $215 million facility for Meow Mix that will recapitalize the company. The new debt consists of a five year, $25 million revolver and a six-year, $190 million term loan. Price talk on both tranches is in the LIBOR plus 3% to 3 1/4% range. The deal launched last Thursday.
The company previously had a first and second-lien loan in place. According to Richard Kassar, senior v.p. and cfo, the company previously had $50 million in junior debt and $130 million in senior debt.
Based in Secaucus, N.J., Meow Mix is owned by The Cypress Group, which bought it for $425 million in 2003 from J.W. Childs Associates. UBS and CIBC World Markets led the financing for the acquisition, which included a $176 million term loan, a $25 million second lien and a $30 million revolver (LMW, 8/10/03).
J.W. Childs bought the company in 2002 after Nestlé purchased Ralston Purina and the Federal Trade Commission forced them to sell the Meow Mix and Alley Cat brands. Joseph Parzick, managing director at Cypress Group and a director of Meow Mix, did not return calls.