UBS Warburg has flexed pricing on a $145 million credit facility backing the $300 million acquisition of Nellson Nutraceutical by Fremont Partners and existing management.
Pricing on the facility, which consists of a $15 million revolver and a $130 million "B" term loan, was flexed down 25 basis points to LIBOR plus 4%, one banker noted. "Reverse flexes are unheard of in the current market," he said, explaining that UBS was able to do so because the deal was three times oversubscribed. Investors had believed the deal would not be flexed downward due to the small size of the tranche (LMW, 9/30).
Fremont and Nellson management are acquiring the Irwindale, Calif., nutrition bar and product maker from Artal Luxembourg, a European private equity shop. The bank financing will be combined with approximately $180 million of equity to fund the buyout. A couple of other minor tweaks to the financing were expected last Friday as LMW went to press. A Fremont spokesman and a UBS banker declined to comment.