Phibro Animal to launch $390 million credit facility on Wednesday

By Sara Rosenberg

New York, March 11 - Phibro Animal Health Corp. is scheduled to hold a bank meeting on Wednesday to launch a $390 million senior secured credit facility, according to a market source.

Bank of America Merrill Lynch and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.

The facility consists of a $100 million revolver and a $290 million seven-year covenant-light term loan, the source said.

Proceeds will be used to help repay $300 million of 9¼% senior notes due July 1, 2018, $24 million outstanding of a term loan due Dec. 31, 2016 payable to Mayflower LP with interest at 11% per year, $10 million of a term loan due Aug. 1, 2014 payable to BFI Co. LLC with interest at 12% and $32 million outstanding under Phibro's domestic senior credit facility.

Other funds for the refinancing will come from an initial public offering by the company of shares of class A common stock.

Phibro is a Teaneck, N.J.-based animal health and mineral nutrition company.

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