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JPMorgan Prepares to Launch $2.9B Leveraged Loan Financing Imperial Dade, BradyPlus Merger

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JPMorgan is preparing to launch a $2.9 billion leveraged loan financing food packaging supplier Imperial Dade’s merger with BradyPlus, according to sources.

The structure of Imperial Dade’s deal is still being finalized, sources said, but will either be a fungible incremental term loan to its existing SOFR+325 bps 2030 term loan B or a new seven-year loan.

Proceeds from the offering will finance Imperial Dade’s merger with fellow packaging supplier BradyPlus, which was announced in a press release in August. Terms of the merger were not disclosed.

The merger is expected to reduce leverage and therefore improve the corporate rating of Imperial Dade, sources added, possibly reducing the margin on the new loan. Imperial Dade’s existing second lien debt, provided by private lenders, will roll over into its new capital structure, according to sources.

Imperial Dade is jointly owned by Advent International and Bain Capital, while BradyPlus is majority owned by Warburg Pincus and Kelso. Advent acquired a significant stake in Imperial Dade from Bain Capital in 2022, which resulted in both firms jointly owning the company, according to a press release.

BradyPlus was formed in 2023 through the merger of Kelso portfolio company BradyIFS and Femsa subsidiary Envoy Solutions along with an investment from Warburg Pincus, according to a separate press release.

Bain Capital, Kelso, Advent International, Warburg Pincus, Fomento Económico Mexicano, SAB de CV (Femsa), the Tillis family and management are among the capital partners involved in the merger, according to the merger’s release.

Imperial Dade’s existing SOFR+325 bps term loan B maturing in 2030 was last trading in the secondary today at 99.75/100.13, according to Solve.

Moody’s Ratings and S&P Global Ratings hold B3/B- ratings on Imperial Dade. Moody’s said in a February note that its rating reflects its “growing scale as a specialty distributor, but also high financial leverage with debt-to-EBITDA above 8x for the 12-month ended Sept. 30, 2024, pro forma for closed acquisitions and the proposed refinancing.”

Additionally, Moody’s said in February that it expects Imperial Dade to “continue to be acquisitive and to focus on making growth investments including supersite launches to increase capacity and operating efficiencies.”

A list of Imperial Dade’s CLO holders can be found HERE. A list of BradyPlus’ business development company creditors can be found HERE.

JPMorgan, Bain Capital, Kelso, Advent and Warburg Pincus declined to comment. Imperial Dade and BradyPlus did not respond to requests for comment.

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