Farley's & Sathers launches $245 million loan at Libor plus 425 bps

By Sara Rosenberg

New York, March 14 - Farley's & Sathers Candy Co. Inc. launched its $245 million credit facility on Monday with price talk of Libor plus 425 basis points with a 1.5% Libor floor, according to a market source.

The facility consists of a $60 million five-year revolver and a $185 million seven-year term loan B.

The revolver is being offered with a 150 bps upfront fee, and the term loan B is being offered at an original issue discount of 99 to 991/2, the source said.

There is 101 soft call protection for one year on the B loan.

Financial covenants include maximum total net leverage and minimum interest coverage ratios.

Bank of America Merrill Lynch, GE Capital Markets and RBS Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Farley's & Sathers is a Round Lake, Minn.-based manufacturer and distributor of confectionary and gum products.

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