Heinz plans $12 billion facility, $2.1 billion bridge loan with buyout

By Sara Rosenberg

New York, Feb. 15 - H.J. Heinz Co. has received a commitment for a $12 billion senior secured credit facility and a $2.1 billion second-lien bridge loan to help fund its acquisition by Berkshire Hathaway and 3G Capital, according to an 8-K filed with the Securities and Exchange Commission on Friday.

JPMorgan and Wells Fargo are leading the financing.

The credit facility consists of a $1.5 billion revolver, $8.5 billion of term loan B-1 and B-2 debt and $2 billion of euro term loan B-1 and B-2 debt, the filing said.

Under the agreement, Heinz shareholders will receive $72.50 in cash per share. The deal, which includes the assumption of Heinz's outstanding debt, is valued at about $28 billion.

Other funds for the transaction will come from $16.24 billion of equity.

Closing is expected in the third quarter, subject to shareholder approval and regulatory approvals.

Heinz is a Pittsburgh-based food product company.

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