Brook & Whittle sets talk for $478M 1st-lien term loan; commits due Dec. 14

Arrangers are out with price talk on Brook & Whittle Ltd.'s $478 million first-lien term loan financing comprising a $378 million funded tranche and a $100 million delayed-draw facility, according to sources. A lender call is scheduled for today at 1 p.m. ET, with commitments due by 5 p.m. ET on Dec. 14.

Price talk for the seven-year covenant-lite term loan is L+450 with a 0.50% Libor floor and an original issue discount of 99. That works out to a yield to maturity of 5.28%. Lenders are offered six months of 101 soft call protection.

There are no ticking fees on the delayed draw for 60 days and then the fee is 50% of the margin for days 61-120, stepping to 100% of the margin thereafter.

Credit Suisse is leading the deal, while Wells Fargo, Jefferies and BMO Capital Markets are joint lead arrangers.

First-lien facility ratings are B-/B2, with a 3 recovery rating from S&P Global Ratings. Corporate ratings are B-/B3, with stable outlooks. Merion Rose Merger Sub Inc. is the borrower.

Proceeds will be used to finance Genstar Capital's acquisition of the company from TruArc Partners, which was announced Nov. 18. Additional financing includes a $50 million revolver due 2026 and a privately placed $169 million second-lien term loan. The revolver will have a springing net first-lien leverage covenant.

Brook & Whittle is a manufacturer of pressure-sensitive labels, shrink sleeves and flexible packaging for personal care, beverage, food, healthcare and household products.