UBS last week launched syndication of the credit backing the leveraged buyout of Atkins Nutritionals by Parthenon Capital and GS Capital Partners. The deal contains a $215 million "B" loan that is rated B+/B2 and is priced at LIBOR plus 31/2%. There is also a $78.5 million second-lien loan that is rated B3/B- and is priced at LIBOR plus 61/2%. The second-lien loan is being sold with an original issue discount at 99, said a banker. Institutional investors are being asked to commit to both tranches, she added. There is also a $30 million revolver priced at LIBOR plus 31/4% with a fee of 75 basis points. The deal was launched Nov. 4, but commitment levels could not be ascertained.
Parthenon is taking a majority interest in Atkins, which promotes the Atkins Nutritional Approach. As obesity and type II diabetes increase, Atkins is used more to combat these epidemics through controlled carbohydrate intake. The firm also provides convenience foods, supplements, baked goods and snacks to complement the approach. A UBS banker declined comment and officials at Parthenon did not return calls by press time.