Hearthside Food upsizes term loan, flexes to Libor plus 300 bps

By Sara Rosenberg

New York, May 17 – Hearthside Food Solutions LLC increased its seven-year senior secured first-lien term loan to $1,145,000,000 from $1.12 billion and reduced pricing to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

Also, the two 25 bps pricing step-downs at 0.5 times and 1 times inside closing date first-lien net leverage were removed and the original issue discount was tightened to 99.75 from 99.5, the source said.

In addition, the MFN was changed to 50 bps based on all-in yield for 24 months with no carve-outs from 75 bps based on margin for six months with carve-outs, the unlimited investments basket was revised to 0.75 times inside closing date total net leverage from 0.5 times inside closing date total net leverage, and the inside maturity exception was removed from the incremental.

Furthermore, investments in unrestricted subsidiaries were modified to the greater of $90 million or 40% of EBITDA from $225 million or 100% of EBITDA, and investments by non-loan parties with cash or assets received under a permitted investment in it were removed, the source continued.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

The company’s now $1,295,000,000 of credit facilities (B2/B), up from $1.27 billion, also include a $150 million revolver.

Goldman Sachs Bank USA, Barclays, Nomura, Antares Capital, Credit Suisse Securities (USA) LLC, RBC Capital Markets LLC and Jefferies LLC are the leads on the deal.

Recommitments were scheduled to be due at 3:30 p.m. ET on Thursday, the source added.

Proceeds will be used to help fund the buyout of the company by Charlesbank Capital Partners and Partners Group from Goldman Sachs and Vestar Capital Partners.

Other funds for the transaction will come from a senior note offering that was downsized with the term loan upsizing.

Hearthside is a Downers Grove, Ill.-based bakery, nutrition bar, snack and customized solutions contract manufacturer for packaged food products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.