Dessert Holdings to launch $565 million of term loans on Tuesday

By Sara Rosenberg

New York, Jan. 14 – Dessert Holdings is set to hold a lender call at 10:30 a.m. ET on Tuesday to launch $565 million of term loans, according to a market source.

Antares Capital, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., KKR Capital Markets, MUFG, Prospect Capital, RBC Capital Markets, SMBC and Stifel are the joint lead arrangers on the deal.

The debt consists of a fungible $430 million incremental covenant-lite first-lien term loan and a fungible $135 million incremental covenant-lite second-lien term loan, the source said.

The company is also upsizing its revolving credit facility to $155 million.

Proceeds will be used with incremental equity from Bain Capital to finance a strategic acquisition.

Pro forma for the transaction, the first-lien term loan will total about $830 million and the second-lien term loan will total $250 million.

Dessert Holdings is a St. Paul, Minn.-based desserts manufacturer.

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