Ferrara Candy ups spread on $425 million B loan to Libor plus 625 bps

By Sara Rosenberg

New York, June 7 - Ferrara Candy Co. Inc. increased pricing on its $425 million term loan B (B2/B) to Libor plus 625 basis points from talk of Libor plus 525 bps to 550 bps, according to a market source.

Also, original issue discount guidance is now 96 to 97, as opposed to 98 to 99, the source said.

The 1.25% Libor floor was left unchanged.

In addition, the term loan now matures in six years and has soft call protection of 102 in year one and 101 in year two, the source added.

Commitments continue to be due on Friday morning.

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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