Hearthside Food ups spread on $280 million loan to Libor plus 600 bps

By Sara Rosenberg

New York, July 6 - Hearthside Food Solutions increased pricing on its $280 million senior secured credit facility to Libor plus 600 basis points from Libor plus 550 bps, according to a market source.

In addition, the Libor floor on the entire facility was changed to 2.25% from 1.75%, the source said.

Tranching on the deal consists of a $35 million five-year revolver and a $245 million six-year term loan.

As before, the term loan is being offered at an original issue discount of 98.

Rabobank International and GE Capital are the bookrunners and lead arrangers on the deal, with Bank of America also a lead arranger. GE is the syndication agent, and Bank of America and Fifth Third are co-documentation agents.

Proceeds will be used to help fund the acquisition of Consolidated Biscuit Co. and the cereal division of Golden Temple of Oregon.

Senior secured leverage is 3.2 times and total leverage is 4.2 times.

Hearthside, a Wind Point Partners portfolio company, is a Downers Grove, Ill.-based manufacturer of specialty food products such as granola bars, croutons, cereals, popcorn and snack mixes.

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