Ferrara plans $550 million facility via Morgan Stanley and Goldman

By Sara Rosenberg

New York, May 24 - Ferrara Candy Co. Inc. is expected to come to market soon with a new $550 million credit facility, according to a market source.

Morgan Stanley Senior Funding Inc. and Goldman Sachs & Co. are the lead banks on the deal.

The facility consists of a $125 million asset-based revolver and a $425 million term loan (B2/B), the source said.

Proceeds will be used to fund the creation of the company through the merger of Round Lake, Minn.-based Farley's & Sathers Candy Co. Inc. and Forest Park, Ill.-based Ferrara Pan Candy Co. Inc.

Catterton Partners, which owns Farley's & Sathers, will remain as a majority investor in the combined company.

Closing is subject to applicable regulatory approval and satisfaction of other customary conditions.

Ferrara Candy is a general line candy manufacturer.

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