Syndication is set to launch tomorrow for a $255 million facility for sweetener manufacturer Merisant Co. The credit recapitalizes the company's debt in conjunction with its offering of Income Deposit Securities (IDS). The credit is made up of a $35 million revolver, $50 million euro-denominated term loan and $170 million "B" loan. Credit Suisse First Boston and RBC Capital Markets are leading the loan.
Don Holtz, Merisant's cfo, said he believes the company is well suited for the IDS structure. "It's a structure that is more dependent on stability of cash flows than it is on a history of strong revenue growth," Holtz said. "Our free cash flows have been very strong and we have very few ongoing cash demands. It fits very well with what the market is asking for and what our past performance has been."
The company needs to change its existing facility because it has a provision that restricts the payment of dividends, Holtz noted. There was $238.7 million outstanding on the company's credit facility as of March 31. CSFB was the company's previous lead bank and RBC is new this time around, Holtz noted. RBC is joint book runner on the IDS offering, he added. CSFB and Merrill Lynch are the other joint book running managers. Pegasus Capital Advisors currently owns 51% of the company. The other owners are MSD Capital, Carol Wood Investments and management. Pegasus officials did not return calls.