Irwindale, Calif.-based, Nellson Nutraceuticals' bank debt has continued to slide as the dietary-bar maker faces shrinking EBITDA. The $285 million first lien traded at 75-78, while the $75 million second lien was quoted around 45-50. Bill Lenihan, a managing director at Fremont Partners, did not return calls.
At the beginning of the month, the first lien traded at 95-96 and the $75 million second lien was quoted at 87. Nellson's first- and second-lien tranches are priced at LIBOR plus 3% and LIBOR plus 5 1/2%, respectively. The credit is led by UBS and Goldman Sachs and also comprises a $25 million revolver priced at LIBOR plus 4%.
Nellson was bought by Fremont in October 2002 with $160 million of financing and $155 million in equity. Since then the company has completed a $100 million add-on financing that was used to repurchase shares and acquire Montreal-based Bariatrix Products International (LMW, 2/20).