Hearthside cuts term loan to $565 million, firms at Libor plus 350 bps

By Sara Rosenberg

New York, April 23 - Hearthside Group Holdings LLC downsized its seven-year covenant-light first-lien term loan to $565 million from $575 million and set pricing at Libor plus 350 basis points, the high end of the Libor plus 325 bps to 350 bps talk, according to a market source.

Also, the 101 soft call protection was extended to one year from six months, the source said.

As before, the term loan has a 1% Libor floor, an original issue discount of 99½ and 50 bps MFN protection for one year.

The term loan has a ticking fee of 175 bps from days 31 to 60 post allocations and 350 bps from days 61 through Aug. 17.

The company's now $665 million credit facility (B1/B), down from $675 million, also includes a $100 million five-year revolver.

Recommitments were due at 5 p.m. ET on Wednesday.

Barclays, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., Fifth Third Securities Inc. and KeyBanc Capital Markets are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Goldman Sachs and Vestar Capital Partners from Wind Point Partners.

Other funds for the transaction will come from $300 million of notes, upsized from $270 million in order to refinance capital leases.

Closing is expected in the second quarter.

Senior secured leverage is 4.4 times, down from 4.6 times originally, and total leverage is 6.8 times, up from 6.7 times originally, the source added.

Hearthside is a Downers Grove, Ill.-based bakery and contract food manufacturer.

© 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.