Phibro Animal sets spread on $290 million term B at Libor plus 300 bps

By Sara Rosenberg

New York, March 27 - Phibro Animal Health Corp. firmed pricing on its $290 million seven-year covenant-light term loan B at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, according to a market source.

Also, the original issue discount on the term loan was revised to 99¾ from talk of 99 to 991/2, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company's $390 million senior secured credit facility (B1/B+) also includes a $100 million revolver.

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

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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