The $176 million term loan and $25 million second-lien loan backing The Cypress Group's $433 million acquisition of J.W. Childs-owned The Meow Mix Company is oversubscribed and lead banks are accepting more tickets for the $231 million credit through this Wednesday, a banker said. UBS and CIBC World Markets are shopping the credit along with a $30 million revolver. Pricing is at LIBOR plus 31/2% on the first-lien debt, while the second-lien piece is priced at LIBOR plus 61/2%, the banker confirmed. A UBS official declined to comment and a CIBC banker could not be reached.
J.W. Childs purchased the Secaucus, N.J.-based dried cat food company from Ralston Purina and Nestlé last year. J.W. Childs tapped UBS for a $130 million deal at that time in order to back the $165 million transaction (LMW, 1/02). The value of the acquisition by Cypress will be more than a 100% markup in the Meow Mix purchase price. Cypress will reportedly pay $200 million in equity in the transaction. A spokesperson for Cypress declined to comment.