Ralcorp closes $550 million term loan to fund Sara Lee acquisition

By Aleesia Forni

Columbus, Ohio, Oct. 5 - Ralcorp Holdings Inc. entered into a new $550 million term loan to fund the acquisition of Sara Lee Corp., according to an 8-K filed with the Securities and Exchange Commission on Monday.

Borrowings will bear interest at Libor plus a margin ranging from 125 basis points to 200 bps, depending on the company's debt rating.

The facility is to be repaid on Oct. 2, 2012.

However, if shares of common stock of Post Holdings Inc. are distributed to Ralcorp's shareholders prior to Oct. 2, the facility is to be repaid five days prior to the date of distribution.

J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC serve as lead arrangers.

JPMorgan Chase Bank NA is administrative agent, while SunTrust Bank and Wells Fargo Bank NA are co-syndication agents.

Ralcorp is a St. Louis-based manufacturer of food products.

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