PAI Partners, the private equity firm is financing its acquisition of R&R Ice Cream from its owners Oaktree. The said purchase is worth Eur253 million or US$331.2 million and would be paid through a five year payment in kind note according to IFR, the Thomson Reuters publication.
According to one of the banks managing the deal, the Payment-In-Kind Toggle note would be rated at CCC+ by Standard and Poors. The marketing would be conducted on Tuesday and Wednesday with Credit Suisse Bank and Barclays Bank as joint physical bookrunners.
The bond is callable after a year from issuance. The first interest payment as well as the last is to be paid out in cash. The other interests are payable in cash or in kind depending upon the conditions presented in the payment-in-kind toggle note.
There was also a consent solicitation sent to bondholders and other creditors of R&R Ice Cream, as there was secured notes with interest at 8.375% issued with a maturity datre of 2017. This was done to amend the control provisions in the said issued bond notes.
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