CSM Bakery to launch $313 million of tack-on term loans on Wednesday

By Sara Rosenberg

New York, July 14 – CSM Bakery Solutions LLC is set to hold a bank meeting at 12:30 p.m. ET in New York on Wednesday to launch $313 million of tack-on term loans, according to market sources.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc. are the lead banks on the deal.

The debt consists of a $157 million first-lien covenant-light tack-on term loan due July 2020 and a $156 million second-lien covenant-light tack-on term loan due July 2021, sources said.

The first-lien loan is talked at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 775 bps with a 1% Libor floor and a discount of 99, sources continued.

Included in the first-lien loan is 101 soft call protection for six months, and the second-lien loan has call protection of 102 in year one and 101 in year two.

Proceeds will be used for a dividend recapitalization.

With this transaction, pricing on the existing $693 million first-lien term loan is being increased from Libor plus 375 bps with a 1% Libor floor and pricing on the existing $150 million second-lien term loan is being increased from Libor plus 750 bps with a 1% Libor floor, sources added.

An amendment is being done with this recapitalization for which lenders are being offered a 15 bps consent fee.

Commitments are due on July 24.

CSM Bakery is a producer of bakery ingredients and products.

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