Meow Mix to launch $231 million loan Wednesday

By Sara Rosenberg

New York, July 24 - The Meow Mix Co. is scheduled to launch a $231 million senior secured credit facility on Wednesday, according to market sources. UBS will be sole bookrunner and lead arranger on the deal, while CIBC has signed up as syndication agent and co-arranger.

The facility consists of a $30 million revolver, a $176 million first-lien term loan and a $25 million second lien term loan.

Pro forma leverage has been indicated at 4 times on a debt/EBITDA basis. Total equity represents approximately 55% of the total capitalization.

Proceeds from the credit facility will be used to help fund the acquisition of Meow Mix by The Cypress Group LLC from J.W. Childs for a purchase price of $433 million.

J.W. Childs had obtained a $130 million bank loan from UBS last year when it purchased Meow Mix from Nestle and Ralston Purina, a sale made to satisfy regulators when the two companies merged. The loan consisted of a $30 million revolver and a $100 million institutional term loan, with pricing on the term loan ending up at Libor plus 275 basis points after a highly successful syndication allowed for the deal to reverse flex by 25 basis points, according to a market source.

Meow Mix is a Secaucus, N.J. dry cat food company.

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