Wells Enterprises talks $100 million add-on term loan at 99-99.5 OID

By Sara Rosenberg

New York, April 23 – Wells Enterprises Inc. launched on Tuesday its fungible $100 million add-on covenant-lite term loan (B1/BB) due 2025 with price talk of Libor plus 275 basis points with a 0% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The add-on term loan and the existing roughly $173 million term loan will get 101 soft call protection for six months, the source said.

Amortization is 1% per annum.

Security is a first-lien on substantially all tangible and intangible assets, except accounts receivable and inventory pledged to support the asset-based revolving credit facility, and a second-lien on the ABL collateral.

BMO Capital Markets is the lead arranger on the deal.

Commitments are due at 5 p.m. ET on May 7, the source added.

Proceeds will be used to fund the acquisition of Fieldbrook Foods from Arbor Investments.

Wells Enterprises is a Le Mars, Iowa-based owned ice cream and frozen treat manufacturer. Fieldbrook Foods is a Dunkirk, N.Y.-based ice cream producer.

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