Waldencast Acquisition said its subsidiary Waldencast Finco Limited entered into a $225 million credit agreement with JPMorgan Chase Bank as administrative agent. Credit Suisse AG was documentation agent and JPMorgan Chase Bank, N.A., Banco Santander, S.A. and Wells Fargo Securities were joint bookrunners and joint lead arrangers.
As a result of the agreement, Waldencast expects to receive aggregate proceeds of up to $1.02 billion (if no shareholders exercise their redemption rights). The amount includes these additional commitments:
- Forward Purchase Agreements with Burwell Mountain Trust, Dynamo Master Fund (each members of Waldencast Long-Term Capital LLC, Waldencast’s sponsor) and Beauty Ventures LLC in the aggregate total amount of $333 million.
- PIPE commitments with certain PIPE investors in the aggregate total amount of $113 million.
- Waldencast’s SPAC proceeds of $345 million (less any redemptions).
Proceeds from the credit facilities may be used to: (i) pay the cash consideration due to the equity holders of Milk Makeup and Obagi Skin Care upon completion of the SPAC’s proposed merger with these companies, (ii) repay all outstanding amounts under existing credit agreements and (iii) fund working capital needs.
The approximately $1.2 billion transaction is a first step in Waldencast’s strategy to create a global multi-brand beauty and wellness platform.
Obagi is a physician-dispensed brand in the dermo-cosmetic space.
Milk Makeup is a cult-favorite beauty brand among Gen-Z consumers. Read more.
