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Pinnacle Foods sets talk on $550 million credit facility with launch
By Sara Rosenberg
New York, March 19 - Pinnacle Foods Finance LLC released price talk on its proposed $550 million credit facility and amendment and extension of its term loan B as the transactions launched on Monday afternoon, according to a market source.
The new $150 million five-year revolver is talked at Libor plus 350 basis points, and the new $400 million 61/2-year term loan E is talked at Libor plus 375 bps with a 1.25% Libor floor and an original issue discount of 99, the source said.
The term loan E includes 101 soft call protection for one year.
Meanwhile, the proposed extended term loan B is talked at Libor plus 350 bps and lenders are being offered a 15 bps extension fee, the source continued.
Non-extended term loan B pricing is Libor plus 250 bps.
The company is looking to push out the maturity on at least 55% of its roughly $1.2 billion term loan B by 2½ years to October 2016. The base extension amount presented to lenders was 65%, the source added.
Barclays Capital Inc, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and Macquarie Capital are the lead banks on the deal, with Barclays the left lead.
Proceeds from the term loan E will be used to repay a roughly $313 million term loan D that was obtained in 2010 at pricing of Libor plus 425 bps with a 1.75% Libor floor and to redeem all $199 million of its 10 5/8% notes.
The credit facility amendment will allow for the entrance into the new term loan E and the extension of the term loan B.
Credit facility lenders are being offered a 10 bps fee to approve the amendment.
Commitments/consents are due on March 26.
Pinnacle Foods is a Mountain Lakes, N.J.-based manufacturer and distributor of branded packaged foods.
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