United Industries launches $235 million term loans

By Sara Rosenberg

New York, July 13 - United Industries Corp. held a bank meeting Tuesday afternoon for $235 million in term loans, according to a market source.

Bank of America, Citigroup and JPMorgan are the lead banks on the deal, with Bank of America listed on the left.

The deal consists of a $160 million add-on to the company's existing term loan (B+) at existing pricing of Libor plus 250 basis points and a $75 million second-lien term loan (B-), the source said.

Proceeds will be used to help finance the $360 million acquisition of United Pet Group Inc. The company has also received an $85 million equity commitment from Thomas H. Lee Partners to finance the acquisition.

United Industries closed on its existing credit facility in April. This facility consisted of a $125 million revolving credit facility due 2010 with an interest rate that can range from Libor plus 175 to 250 basis points, a $335 million term loan due 2011 with an interest rate of Libor plus 250 basis points and a C$50 million term loan due 2011 with an interest rate of Libor plus 250 basis points.

United Industries is a St. Louis manufacturer and marketer of products for the consumer lawn and garden care and household insect control markets.

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