Banc of America Securities last week launched syndication of a $390 million leveraged recapitalization for American Seafoods Group with a bank meeting in Seattle for existing lenders. A meeting will be held March 21 for institutional accounts and select new investors. American Seafoods is a harvester and at-sea processor of groundfish.
B of A is sole lead arranger and bookrunner on the deal, which comprises a $75 million, five-and-a-half year revolver priced at LIBOR plus 3%, with a 1/2% commitment fee. The $90 million term loan "A" has the same tenor and spread. A $225 million, seven-year "B" term loan is priced at LIBOR plus 31/ 2%. Fees and tiers have not yet been set.
Scott Perekslis, managing director at Centre Partners, explained the original transaction was put in place in January 2000, when Centre Partners Management, members of management and two native Alaskan equity investors purchased the company. B of A led the original transaction and the rates are fairly similar, he said. American Seafood's revenues and cash flow have grown substantially since 1999, said Perekslis.
The leveraged recap will refinance approximately $206 million of existing senior facilities, refinance several existing senior subordinated promissory notes and pay a cash distribution to the equity holders. After the recap, Centre Partners will sell part of its ownership interest to management and the native Alaskan investors, who combined will increase their ownership to approximately two-thirds of the fully diluted equity of the company, said Perekslis.