Schiff Nutrition International Inc., a maker of nutritional supplements, changed the mix on $200 million of loans the company is seeking to support its acquisition of Airborne Inc. <\/p>\n
A $150 million term loan was cut to $140 million and will now pay interest at 4.75 percentage points more than the London interbank offered rate, compared with a range of 4.5 percentage points to 4.75 percentage points. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor. <\/p>\n
The loan will be due in six years compared with the seven- year maturity originally offered. Schiff is now proposing to sell the debt at 98.5 cents on the dollar, compared with 99 cents earlier proposed. The discount lowers proceeds for the company and boosts the yield to investors. <\/p>\n
The Salt Lake City-based company also increased the size of a five-year revolving line of credit to $60 million from $50 million. The revolver pays interest at 4.75 percentage points more than Libor and will be sold to investors at 99 cents. <\/p>\n
Royal Bank of Canada and Bank of Montreal are arranging the financing and lenders must submit commitments by 5 p.m. today in New York. The debt is expected to be distributed to investors this week. <\/p>\n
Schiff acquired 100 percent of Airbornes stock from GF Capital Private Equity Fund LP for $150 million, according to an April 2 company statement distributed by Business Wire. <\/p>\n
Becky Herrick, a spokeswoman for Schiff Nutrition, didnt immediately respond to an e-mail seeking comment. <\/p>\n
In a revolving credit facility, money can be borrowed again once its repaid; in a term loan it cant. <\/p>\n
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Originally posted here: Schiff Nutrition International Inc., a maker of nutritional supplements, changed the mix on $200 million of loans the company is seeking to support its acquisition of Airborne Inc. Continue reading
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