Univision rises on amendment news; Fresh Del Monte readies launch; Earthbound nears wrap

By Sara Rosenberg

New York, June 11 - Univision Communications Inc.'s term loan B headed higher on Thursday after the company announced that it reached an agreement on an amendment that will change covenants and require a revolver paydown and reduction.

Over in the primary market, Fresh Del Monte Produce Inc. is gearing up to launch a new revolving credit facility into syndication and with the bank meeting approaching fast, price talk started circulating.

Also Earthbound Farm currently anticipates wrapping syndication of its in market buyout financing credit facility in the near future.

Univision up with amendment

Univision's term loan B gained some ground during the trading session as the company revealed that it reached an agreement with lenders to amend its revolving senior secured credit facility, according to market sources.

The term loan B was quoted by one source at 71½ bid, 72½ offered, up from 70 bid, 70½ offered on Wednesday, and by a second source at 71 bid, 72½ offered, up from 69¾ bid, 70¾ offered.

Under the amendment, Unvision is gaining more room under financial covenants.

The first-lien leverage ratio was changed to 11.75 for the fiscal quarters ending June 30 and Sept. 30, 11.25 on or before March 31, 2010, 11.00 on or before Sept. 30, 2010, 10.75 on or before Sept. 30, 2011, 10.50 on or before March 31, 2012, 10.25 on or before Sept. 30, 2012, 9.25 on or before Sept. 30, 2013 and 8.50 thereafter.

In addition, the amendment will specify the amount of certain benefits used in the calculation of the company's EBITDA for the purposes of complying with the financial covenant.

Univision reducing revolver

As a condition of the amendment, Univision must repay $150 million of borrowings under its revolving credit facility with simultaneous reductions in the related commitments.

And, as a result of the repayment and reduction, the company's revolver size will end up totaling $600 million.

The revolver repayment is expected to be made with cash on hand.

The amendment is also conditioned on the receipt of amendment fee by revolving lenders who give consents on or prior to June 16.

In order for the amendment to become effective, all conditions must be satisfied by 5 p.m. ET on June 19.

Deutsche Bank and Bank of America acted as joint arrangers on the amendment.

Univision selling notes

Also on Thursday, Univision announced that it plans to issue a new series of senior secured fixed-rate notes in an amount that is sufficient to fund a tender offer for its $500 million of 7.85% senior secured notes due 2011.

The tender offer is contingent upon the tender of at least 75% of the outstanding principal amount of notes.

The principal amount of notes to be purchased will be limited to the net proceeds from the new financing.

Expiration of the tender offer is scheduled for July 8.

Univision is a Los Angeles-based Spanish-language media.

Fresh Del Monte launching revolver

Switching to new deal happenings, Fresh Del Monte scheduled a bank meeting for Tuesday to launch a proposed $500 million 31/2-year revolving credit facility, according to a market source.

And, with the launch coming up soon, price talk of Libor plus 300 basis points with a 62.5 bps unused fee was announced on the deal, the source said.

Rabobank is the lead bank on the revolver that will be used to refinance the company's existing $600 million revolver due Nov. 10, 2009 and term loan due May 10, 2011.

At March 27, the company had about $330 million outstanding under the revolver and $138.8 million outstanding under the term loan.

Fresh Del Monte is a Cayman Islands-based producer, transporter, marketer and distributor of fresh and fresh-cut fruit and vegetables.

Earthbound Farm hopes to wrap soon

Earthbound Farm expects to be able to complete syndication of its $135 million senior credit facility by the end of next week, a market source told Prospect News on Thursday.

The deal is comprised of a $25 million revolver and a $110 million term loan, with both tranches talked at Libor plus 550 bps with a 3% Libor floor.

RBC Capital Markets is the lead bank on the loan that will be used to help fund the buyout of the company by HM Capital.

Other buyout financing will come from $60 million of mezzanine debt.

A select group of guys were approached about the deal, but according to the source, syndication was not done in a club style. Mainly investors that were approached last year when the company was syndicating a credit facility via RBC for its buyout by Lindsey Goldberg - which ended up falling through - were approached this time around as well.

The deal that was being shopped for the failed Lindsey Goldberg buyout consisted of a $100 million term loan and a $35 million revolver, with both tranches priced at Libor plus 500 bps with an original issue discount of 98.

Earthbound Farm is a San Juan Bautista, Calif.-based organic produce company.

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