Earthbound firms spread on $225 million loan at Libor plus 500 bps

By Sara Rosenberg

New York, Dec. 16 - Earthbound Farm set pricing on its $225 million six-year term loan B at Libor plus 500 basis points, the low end of the Libor plus 500 bps to 525 bps talk, according to a market source.

In addition, the original issue discount firmed at 981/2, whereas talk was in the 98 to 98½ range, the source said.

The 1.75% Libor floor was left unchanged.

The company's $250 million credit facility (B1/B+) also includes a $25 million five-year revolver.

RBC is the lead bank on the deal.

Proceeds will be used to refinance existing debt and to fund a dividend payment.

Allocations are expected to go out and closing is anticipated to take place early next week, the source added.

Earthbound Farm is a San Juan Bautista, Calif.-based organic food company.

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