Jarden's $2.236 billion of loans break for trading at discount of 99.5

By Paul A. Harris

Portland, Ore., Sept. 19 - Jarden Corp.'s combined $2,236,000,000 of term loans (Ba1/BBB-) priced and broke for trading on Thursday, according to a market source.

All tranches priced at 99.5, atop price talk that cut the discount from the initial talk of 99.

The $750 million Libor plus 275 basis points seven-year incremental term loan B-1 broke to par 1/8 bid, par 5/8 offered. The tranche has 101 soft call protection until March 2014, and amortizes at 1% annually.

The $640 million five-year term loan B broke to par bid, par ¾ offered. The term loan B has 101 soft call protection and 1% annual amortization.

The $250 million term loan A-1 due March 31, 2016 broke to par bid, par ¾ offered. The term loan A-1 has a 101 six-month soft call and amortizes at 1% annually.

The $596 million term loan A broke to par bid, par ¾ offered. The term loan A is callable at par.

Barclays, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Deutsche Bank Securities Inc. and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Proceeds will be used to help fund the acquisition of Yankee Candle Investments LLC from Madison Dearborn Partners LLC for $1.75 billion in cash.

Other funds for the transaction will come from cash on hand and common equity.

Closing is expected early in the fourth quarter, subject to customary conditions and regulatory approvals.

Upon closing, Jarden would have pro forma net sales of about $7.7 billion and adjusted EBITDA of around $1 billion for the 12 months ended June 30.

Secured leverage is 3.1 times, and net total leverage is 3.6 times, excluding an accounts receivables securitization, the source added.

Jarden is a Rye, N.Y.-based provider of a diverse range of consumer products. Yankee Candle is a South Deerfield, Mass.-based designer, manufacturer, wholesaler and retailer of scented candles.

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