Ferrara Candy talks $425 million loan at Libor plus 525-550 bps

By Sara Rosenberg

New York, May 30 - Ferrara Candy Co. Inc. launched its $425 million term loan (B2/B) on Wednesday with price talk of Libor plus 525 basis points to 550 bps with a 1.25% Libor floor and an original issue discount of 98 to 99, according to a market source.

Commitments are due on the morning of June 8, the source said.

Morgan Stanley Senior Funding Inc. and Goldman Sachs & Co. are the lead banks on the deal.

The company's $550 million credit facility also includes a $125 million asset-based revolver.

Proceeds will be used to fund the creation of the company through the merger of Round Lake, Minn.-based Farley's & Sathers Candy Co. Inc. and Forest Park, Ill.-based Ferrara Pan Candy Co. Inc.

Catterton Partners, which owns Farley's & Sathers, will remain as a majority investor in the combined company.

Closing is subject to applicable regulatory approval and satisfaction of other customary conditions.

Ferrara Candy is a general line candy manufacturer.

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