Fort Dearborn sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, Sept. 21 – Fort Dearborn Co. (Fortress Merger Sub Inc.) released price talk on its $455 million seven-year covenant-light first-lien term loan (B2/B-) and $170 million eight-year covenant-light second-lien term loan (Caa2/CCC) in connection with its bank meeting on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien tem loan is talked at Libor plus 875 bps to 900 bps with a 1% Libor floor and a discount of 98.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc., RBC Capital Markets LLC and Credit Suisse Securities (USA) LLC are the bookrunners on the $625 million in term loans.

Commitments are due on Oct. 6, the source added.

Proceeds will be used to help fund the buyout of the company by Advent International from KRG Capital Partners.

Fort Dearborn’s management team will retain a minority stake in the company and continue to lead the business following the completion of the transaction.

Closing is expected this quarter, subject to customary conditions.

Fort Dearborn is an Elk Grove, Ill.-based supplier of high-impact prime labels for the consumer goods industry.

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