Diamond Foods sets Thursday launch for $540 million credit facility

By Sara Rosenberg

New York, Jan. 29 - Diamond Foods Inc. scheduled a bank meeting for 10 a.m. ET in New York on Thursday to launch its proposed $540 million senior secured credit facility, according to a market source.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Barclays, BMO Capital Markets and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

The facility consists of a $125 million asset-based revolver due in 2018 and a $415 million 41/2-year first-lien covenant-light term loan.

Included in the term loan is 101 soft call protection for six months, the source said.

Commitments are due on Feb. 12.

In addition to the credit facility, the company is looking to sell $230 million of senior unsecured notes.

Proceeds will be used to refinance an existing senior secured credit facility due Feb. 25, 2015 and senior unsecured notes due 2020 held by Oaktree.

The company said in a news release that it expects the refinancing would lower its cost of debt and provide greater flexibility in its capital structure.

Diamond Foods is a San Francisco-based packaged food company.

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