Citigroup and Harris Nesbitt--the U.S.-based investment and corporate banking practice of BMO Financial Group--wrapped up a $250 million credit for Seminis last Thursday after cutting pricing on the six-year, $190 million "B" loan. A banker familiar with the deal said the term loan was oversubscribed with more than $500 million in tickets received for the tranche, causing the lead arrangers to reduce pricing from the originally proposed LIBOR plus 31/2% level by 25 basis points. The institutional piece was offered at par. The credit also includes a five-year, $60 million revolver priced at LIBOR plus 3%, the banker added.
Proceeds from the credit, along with a 10-year, $190 million, 101/4% senior subordinated notes deal, backed the acquisition of Seminis from its controlling shareholder, Monterrey, Mexico-based Savia and public shareholders. Investment funds managed by San Francisco-based private equity firm Fox Paine & Co. have partnered up with Alfonso Romo Garza, chairman and ceo of Seminis and Savia, and his affiliates to complete the approximately $650 million transaction.
Other lenders to the deal include CIBC World Markets, GE Capital, Merrill Lynch, Rabobank and TD Securities. Fox Paine and co-investors were said to be contributing $241 million of cash equity toward the transaction. Pro forma for the transaction, total debt-to-EBITDA was quoted at 4.8 times. Oxnard, Calif.-based Seminis is the world's largest producer and developer of fruit and vegetable seeds. Fox Paine, Citi and Harris officials declined to comment.