Utz Quality Foods updates pricing on $660 million of term loans

By Sara Rosenberg

New York, Nov. 13 – Utz Quality Foods LLC reduced pricing on its $535 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 350 basis points from Libor plus 375 bps, and set the original issue discount on its $125 million eight-year covenant-light second-lien term loan (Caa1/CCC+) at 98.75, the midpoint of the 98.5 to 99 talk, according to a market source.

As before, the first-lien term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan has pricing of Libor plus 725 bps with a 0% Libor floor and hard call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch is the lead on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Monday, the source said.

Proceeds will be used to fund the acquisition of Inventure Foods Inc. for $4.00 per share in cash, for a total purchase price of about $165 million, including the assumption of around $75 million of debt and debt-like items, to finance the purchase of Metropoulos and Co.’s minority stake in Utz and to refinance existing debt.

Closing is expected this quarter, subject to the tender of more than 50% of the fully diluted shares of Inventure Foods common stock, the receipt of regulatory approvals and other customary conditions.

Utz is a Hanover, Pa.-based salty snack manufacturer and marketer. Inventure Foods is a Phoenix-based specialty food marketer and manufacturer.

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