Arrangers for Innovation Ventures, the maker of 5-Hour Energy drinks, pulled the company's two-pronged financing package this morning after the sale to Renew Group Private fell apart.
The financing package included a $525 million senior secured loan and a $400 million senior note issue that had been circulating the market, according to sources. Proceeds would have backed Renew Group's purchase and refinanced outstanding bonds.
Innovation Ventures is still evaluating plans that would allow it to refinance its debt, the company stated this morning in a press release.
Bank of America Merrill Lynch and KeyBanc Capital Markets were arranging the loan and had set price talk of L+450, with a 1% LIBOR floor and a 99 offer price on a $500 million term loan.
S&P Global Ratings rated the issuer B+ and the first-lien debt BB, with a 1 recovery rating. The proposed bonds drew B–, with a 6 recovery rating.
As reported, Farmington Hills, Mich.–based Innovation Ventures is 80% directly or indirectly owned by CEO Manoj Bhargava, who would have sold a roughly 80% stake through a trust. — Kelsey Butler
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