Jarden readies launch of new term loan debt for Monday morning

By Sara Rosenberg

New York, July 17 – Jarden Corp. is set to hold a lender call at 11 a.m. ET on Monday to launch new term loan debt, according to a market source.

Barclays, Credit Suisse Securities (USA) LLC and UBS AG are the bookrunners on the deal.

Size and structure of the new term debt is not yet available, the source said.

Proceeds will be used to help fund the company’s acquisition of Waddington Group Inc. from Olympus Partners and other stockholders for about $1.35 billion.

In a recent 424B5 filing with the Securities and Exchange Commission, the company said that it expects to get $600 million in incremental term loans and senior notes to help fund the acquisition, and other funds for the transaction would come from the sale of 14 million shares of common stock and cash on hand.

The company actually received a commitment for up to $500 million of incremental first-lien term loans and up to $850 million in senior unsecured bridge loans. The debt commitment, however, will be reduced on a dollar-for-dollar basis by the proceeds from the stock offering and the senior notes issuance.

Currently, the company’s existing term loan debt is comprised of a $643.5 million term loan A due Dec. 17, 2019 that is priced at Libor plus 175 basis points, a roughly $623.5 million term loan B due March 31, 2018 that is priced at Libor plus 250 bps and a roughly $736.9 million term loan B-1 due Sept. 30, 2020 that is priced at Libor plus 275 bps.

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

The company is targeting year-end bank leverage of 3 times or below and at least $4 billion of cash flow from operations over the next five years.

Jarden is a Boca Raton, Fla.-based diversified consumer products company. Waddington is a Covington, Ky.-based manufacturer and marketer of disposable tableware for commercial, foodservice and retail markets.

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