| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for ACCO Brands Corp. > News item |
ACCO Brands reveals talk on $920 million credit facility with launch
By Sara Rosenberg
New York, Feb. 2 - ACCO Brands Corp. came out with price talk on its $920 million senior secured credit facility (Ba2/BB+/BB+) with its Thursday bank meeting, according to a market source.
The $250 million revolver and $300 million term loan A are being talked at Libor plus 300 basis points, and the $370 million term loan B is being talked at Libor plus 375 bps with a 1% Libor floor and an original issue discount of 99, the source said.
The term loan B has 101 soft call protection for one year.
Commitments are due in two weeks, the source added.
Barclays Capital Inc., Bank of America Merrill Lynch and Bank of Montreal are the lead banks on the debt.
Proceeds will fund the company's merger with MeadWestvaco's office supplies business, repay ACCO's 10 5/8% senior secured notes and pay for ongoing working capital requirements.
Additionally, the company is expected to get $270 million in bonds that are backed by a senior unsecured bridge loan commitment, the source said.
The merger with the Consumer & Office Products business is valued at roughly $860 million, and at completion, MeadWestvaco shareholders will own 50.5% of the combined company.
Specifically, MeadWestvaco will establish a separate entity to hold the Consumer & Office Products business, the shares of which will be distributed to MeadWestvaco shareholders in a tax-free transaction in return for a $460 million dividend to MeadWestvaco from the new entity. Immediately after the spin-off and distribution, the newly formed company will merge with a subsidiary of ACCO.
Closing is expected in the first half of this year, subject to approval by ACCO shareholders and the satisfaction of customary closing conditions and regulatory approvals, including a ruling from the U.S. Internal Revenue Service on the tax-free nature of the transaction.
ACCO Brands is a Lincolnshire, Ill.-based office supply manufacturer.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.