J.P. Morgan launched syndication last Wednesday of a $1.2 billion refinancing credit for The Scotts Company. The deal includes a $650 million "B" loan and a $550 million revolver. Market players said pricing on the deal is in the LIBOR plus 21/4% range. Scotts, a supplier of lawn and garden care products, has also commenced a cash tender offer for any and all of its $400 million outstanding 85/8% senior subordinated notes due 2009. The tender offer will be financed with the new credit, as well as with a proposed senior subordinated note offering for $200 million. Citigroup and Bank of America are acting as dealer managers in connection with the tender offer. A J.P. Morgan spokesman declined to comment.
Scotts' existing credit was put in place in December of 2000 and includes a $260 million "B" term loan and a $550 million revolver, priced at LIBOR plus 21/2% and LIBOR plus 13/4%, respectively. There are also three term loans that were put in place in 2000 totaling about $195 million and divided between German, French and British currencies. J.P. Morgan also leads this credit, with Citi acting as syndication agent, while Credit Lyonnais and Bank One are documentation agents. Scotts, which owns the Miracle-Gro brand, racked up $1.76 billion in sales for 2002. Rebecca Bruening, v.p. and corporate treasurer, did not return calls.