Hearthside ups talk on $400 million loan to Libor plus 500-550 bps

By Sara Rosenberg

New York, May 24 - Hearthside Food Solutions LLC increased price talk on its $400 million credit facility to Libor plus 500 basis points to 550 bps from Libor plus 450 bps, according to a market source.

The facility consists of a $30 million five-year revolver, a $30 million six-year delayed-draw term loan that is available for one year and a $340 million six-year term loan B.

With the flex, 101 soft call protection for one year was added to the term loan B, the source said.

As before, the deal includes a 1.25% Libor floor and is being offered at an original issue discount of 99.

The revolver has a 50 bps unused fee and the delayed-draw term loan has a 100 bps unused fee.

GE Capital Markets and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt and fund a small dividend.

Recommitments are due on Wednesday, the source added.

Hearthside is a Downers Grove, Ill.-based bakery and a full-service contract manufacturer of grain-based food and snack products.

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