Tata Coffee sets Thursday launch for $173 million credit facility

By Sara Rosenberg

New York, Nov. 7 - Tata Coffee Ltd. has scheduled a bank meeting for Thursday morning to launch its proposed $173 million credit facility, according to a market source.

Rabo Bank is the lead bank on the deal.

The facility consists of a $15 million revolver, a $105 million first-lien term loan and a $53 million second-lien term loan, the source said, adding that price talk will emerge at the bank meeting.

This deal had originally been scheduled to launch on Sept. 14 with a second-lien loan that was $10 million larger - all other tranche sizes are the same - but was pushed off on scheduling issues. The second-lien was downsized from original expectations because the company decided to put in some subordinated debt.

Proceeds will be used to help fund the acquisition of Montvale, N.J.-based Eight O'Clock Coffee Co. from Gryphon Investors for a total acquisition price of $220 million.

Tata Coffee is an India-based coffee company.

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