Flavors Holdings reveals first- and second-lien loan talk with launch

By Sara Rosenberg

New York, Sept. 12 – Flavors Holdings Inc. disclosed price talk on its $365 million six-year first-lien term loan (B) and $75 million seven-year second-lien term loan (B-) in connection with its bank meeting on Friday, according to a market source.

The first-lien term loan is talked at Libor plus 550 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 950 bps with a 1% Libor floor and a discount of 98˝, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company’s $490 million credit facility also provides for a $50 million revolver.

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC, Deutsche Bank Securities Inc. and PNC Capital Markets are the lead banks on the deal.

Proceeds will be used to fund the acquisition of Merisant Co., a producer of low-calorie tabletop sweeteners, by Mafco Worldwide, a Camden, N.J.-based manufacturer of licorice extract and related derivatives for use as flavoring and moistening agents.

Commitments are due on Sept. 26.

Flavors is a provider of flavoring and sweetening products and solutions.

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