CIBC World Markets and Bank of America allocated the term loan "B" for Jarden Corp. last week that backs the $155 million acquisition of Lehigh Consumer Products Corp. The branded consumer products manufacturer and distributor decided to delay a further acquisition, which led to a downsizing of the loan, explained Ian Ashken, Jarden's cfo. The $215 million delayed-draw "B" loan was converted into a $150 million fully-funded loan. "We originally were going to do a two-stage, but as part of the loan document, there is a [green] shoe that will allow us to go back and do another acquisition within six months," Ashken added.
Ashken declined comment on the other acquisition and why it has been delayed. A banker said due diligence on the transaction will take longer than the delayed-draw loan's effective date and that the banks are expected to bring an add-on soon. Pricing on the loan was reduced from LIBOR plus 3% to LIBOR plus 23/4%. The revolver remained at $70 million, the banker added. The loan was trading at 1005/8 last week.
According to Standard & Poor's, Jarden has grown mostly through acquisitions in the past two years. In April last year the company purchased Tilia, owner of the FoodSaver product line, for $160 million. Last February, the company purchased Diamond Brands for $90 million. A CIBC banker declined comment and a B of A banker did not return calls.