Utz Brands plans new debt financing for Truco Enterprises purchase

By Sara Rosenberg

New York, Nov. 12 – Utz Brands Inc. has received debt financing commitments to help fund its acquisition of Truco Enterprises from Insignia Capital Group for $480 million, according to a company presentation.

BofA Securities Inc. and Goldman Sachs provided the commitments.

The company will further evaluate financing options and ultimate structure prior to closing.

Other funds for the transaction will come from cash on hand.

Assuming Utz fully draws this commitment, net leverage immediately following the transaction would be about 4.8x combined 2020 estimated adjusted EBITDA including run-rate synergies. The company expects to return to its stated target net leverage ratio of 3x to 4x within 12 to 18 months after closing.

Closing is expected in December, subject to customary conditions and regulatory approvals.

Utz is a Hanover, Pa.-based manufacturer of branded salty snacks. Truco is a Dallas-based seller of tortilla chips, salsa and queso.

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