Diamond Foods flexes $415 million term loan to Libor plus 325 bps

By Sara Rosenberg

New York, Feb. 10 - Diamond Foods Inc. reduced pricing on its $415 million 41/2-year first-lien covenant-light term loan (B2/B-) to Libor plus 325 basis points from talk of Libor plus 375 bps to 400 bps, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months.

Recommitments were due at 5 p.m. ET on Monday, accelerated from an original commitment deadline of Wednesday, the source added.

The company's $540 million senior secured credit facility also includes a $125 million asset-based revolver due in 2018.

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.

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

Other funds for the refinancing will come from $230 million of senior unsecured notes.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.