The $200 million refinancing credit for Central Garden & Pet Co. was nearly three times oversubscribed late last week, with lead arrangers CIBC World Markets, SunTrust Bank and Bank of America considering a reverse price flex for the $100 million "B" loan. The six-year institutional piece, is priced at LIBOR plus 3%, and would probably tighten to LIBOR plus 23/4%, said a banker familiar with the deal. There is also a five-year, $100 million revolver priced at LIBOR plus 21/4%. The facility also includes a $75 million accordion feature, subject to the lenders and specified covenants. A CIBC official declined to comment, while B of A and SunTrust bankers did not return calls.
"It's an easy to understand story," the banker said of the pet, lawn and garden supply producer. "They have stable brands," he added. Lafayette, Calif.-based Central Garden recently completed a $150 million, 91/8% senior subordinated private placement to redeem convertible notes and reduce debt under its credit lines. Officials at Central Garden did not return calls by press time.