Bioplan/Arcade flexes pricing on first- and second-lien term loans

By Sara Rosenberg

New York, Aug. 12 – Bioplan/Arcade Marketing raised pricing on its $375 million seven-year first-lien covenant-light term loan (B2/B+) to Libor plus 450 basis points from talk of Libor plus 400 bps to 425 bps and on its $145 million eight-year second-lien covenant-light term loan (Caa2/B-) to Libor plus 800 bps from talk of Libor plus 750 bps to 775 bps, according to a market source.

In addition, the original issue discount on the first-lien term loan was changed to 98˝ from 99 and the discount on the second-lien term loan was revised to 98 from 99, the source said.

Both term loans still have a 1% Libor floor, the first-lien term loan still has 101 soft call protection for six months, and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

The term loans have a ticking fee of half the spread from days 31 to 60 and the full spread thereafter.

The company’s $585 million credit facility also includes a $65 million revolver (B2/B+).

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are the lead banks on the deal, with Goldman the left lead on the first-lien loan and Credit Suisse the left lead on the second-lien loan.

Proceeds will be used to fund the merger of the two companies.

Bioplan is owned by Ileos, which is owned by Oaktree Capital Management LP, and Arcade Marketing is owned by Visant Corp., which is controlled by KKR and DLJ Merchant Banking.

Under the agreement, Oaktree would retain a 75% ownership interest and KKR/DLJ Merchant would retain a 25% ownership interest in the combined company.

Closing is expected by the beginning of the fourth quarter, subject to customary conditions and regulatory reviews.

Bioplan is a provider of unit-dose sampling and promotional turnkey solutions. Arcade Marketing is a New York-based provider of sampling solutions for the fragrance, cosmetics and skincare segments.

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