Multi-Color widens price talk on $1.972B equivalent term loan

Price talk on the $1.972 billion-equivalent cross-border loan backing Clayton Dubilier & Rice's acquisition and merger of Multi-Color Corp., or MCC, and Fort Dearborn has been widened across both tranches. Reconfirmed orders are due by 11 a.m. ET/4 p.m. London time via a BofA Securities-led arranger group.

The split between the dollar and euro tranches is to be decided, and revised guidance is outlined as:

* U.S. dollar: L+500 with a 0.5% floor offered at 98-98.5, from L+425-450, 0.5%, 99
* Euro: E+525 with a 0% floor offered at 98-98.5, from E+450-475, 0%, 99

The seven-year loan comes with six months of soft call protection, and revised guidance suggests a yield of 5.9%-5.99% on the dollars and 5.64%-5.73% on the euros. The deal was presented on a global call on Oct. 13.

Goldman Sachs, Barclays, Credit Suisse, Deutsche Bank, RBC, UBS and Wells Fargo comprise the full arranger group. BMO and KKR Capital Markets are joint lead arrangers.

The loan comes alongside a $750 million, seven-year secured bond, a $700 million rollover of Multi-Color's 6.75% secured notes, a $690 million rollover of Multi-Color's 10.5% unsecured notes, $460 million in eight-year unsecured notes and an equity contribution. Together, proceeds will support CD&R's acquisition and combination of the two firms, in a deal designed to create the world's largest label solutions company. The private equity firm is buying Fort Dearborn from Advent International and MCC from Platinum Equity for a combined $5.82 billion.

The bonds were presented on an investor call on Oct. 18 with roadshows due to run to Oct. 21. Goldman Sachs is leading the bookrunner group.

Ratings are out at B-/B3 (corporate), B-/B2 (secured) and CCC+/Caa2 (unsecured). The outlook is stable from S&P Global Ratings and negative from Moody's.

The combination of Fort Dearborn and MCC is designed to create a diversified platform serving customers active in categories such as wine and spirits, food and beverage, beer, and home and personal care. For the trailing-12-month period, the company generated net pro forma revenue of $3.3 billion and adjusted EBITDA of $783 million, including cost savings from the merger.