Rodan & Fields launches $800 million credit facilities to investors

By Sara Rosenberg

New York, May 23 – Rodan & Fields LLC launched at its bank meeting on Wednesday $800 million of senior secured credit facilities (BB), according to a market source.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Citizens Bank and MUFG are the joint lead arrangers on the deal. Citigroup is the administrative agent.

The facilities consist of a $200 million five-year revolver and a $600 million seven-year covenant-light term loan B, the source said.

Price talk on the term loan B is Libor plus 275 basis points with a 0% Libor floor and an original issue discount of 99.5, the source continued.

The term loan B has 101 soft call protection for six months and amortization of 1% per annum.

Mandatory prepayments are from 50% of excess cash flow subject to leverage-based step-downs, 100% of asset sale proceeds subject to leverage-based step-downs and reinvestment rights, and 100% of debt issuance proceeds from other permitted debt.

The revolver has a springing maximum gross first-lien leverage ratio covenant of 3.75 times when use is greater than 35% of total commitments.

Proceeds will be used to refinance existing credit facilities and pay a dividend to shareholders, excluding TPG.

Commitments are due at 5 p.m. ET on June 6, the source added.

Closing is expected in mid-June.

Rodan & Fields is a San Francisco-based producer of skincare products.

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