B&G Foods revises $300 million incremental term loan OID to 99

By Sara Rosenberg

New York, Dec. 8 – B&G Foods Inc. tightened the original issue discount on its fungible $300 million incremental senior secured covenant-lite first-lien term loan B-4 (BB) due Oct. 10, 2026 to 99 from talk in the range of 98 to 98.751, according to a market source.

Pricing on the incremental term loan is Libor plus 250 basis points with a 0% Libor floor.

The incremental term loan has 101 soft call protection for six months.

Security is substantially all of the tangible and intangible assets of the company, other than real property, and a pledge of all equity interests in the borrower’s material subsidiaries.

Barclays is the left lead bookrunner on the deal and the administrative agent.

Final commitments were scheduled to be due at 11 a.m. ET on Tuesday, the source added.

Proceeds will be used to repay a portion of the revolving credit facility borrowings that were used to fund the $550 million acquisition of the Crisco brand of oils and shortening from the J.M. Smucker Co.

The company also plans to increase its revolver capacity and extend the revolver maturity date.

Closing is expected during the week of Dec. 14.

B&G Foods is a Parsippany, N.J.-based manufacturer and distributor of shelf-stable food products.

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