Daily News: September 6, 2016

Jeffries Agents $600MM Term Loan to Support Amplify Acquisition

Amplify Snack Brands completed the acquisition of Crisps Topco Limited and subsidiaries (Tyrrells). Tyrrells is now a wholly-owned subsidiary of Amplify. The company expects this acquisition will be accretive to both its 2017 and 2018 diluted earnings per share.

As part of the transaction, Amplify paid approximately £278 million ($370 million) in cash and issued approximately 2.1 million shares of its common stock to Investcorp and members of Tyrrells’ management team.

Amplify financed the cash portion of this transaction with proceeds from a $600 million covenant lite term loan. The interest rate on the term loan is a floating rate based upon LIBOR+5.50% with a 1.00% floor on LIBOR. A $50 million, five-year revolver adjoins the term loan.

Jefferies served as the company’s exclusive financial advisor and acted as the lead left arranger and administrative agent for the financing. Credit Suisse and Goldman Sachs acted as joint lead arrangers and bookrunners, and as syndication agents. SunTrust served as documentation agent for the transaction.

“We took a tremendous step forward to build upon our Better-For-You snacking growth strategy with the acquisition of Tyrrells and its international portfolio of premium snack brands,” said Tom Ennis, Amplify’s president and CEO. “We are excited to welcome David Milner and the entire Tyrrells team to the Amplify family and look forward to significantly broadening our international customer reach, meaningfully diversifying our brand, product, category, geographic and retail presence, as we realize the benefits of operating scale to fuel our future revenue synergies and continued sales and profit growth.”

Austin, TX-based Amplify Snack Brands is a snack food company focused on developing and marketing products that appeal to consumers’ growing preference for Better-For-You (BFY) snacks.