Hearthside firms spread on $400 million loan at Libor plus 525 bps

By Sara Rosenberg

New York, June 5 - Hearthside Food Solutions LLC finalized pricing on its $400 million credit facility at Libor plus 525 basis points, the midpoint of revised talk of Libor plus 500 bps to 550 bps, and wide of initial talk of Libor plus 450 bps, according to a market source.

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

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.

Term loan B debt has 101 soft call protection for one year, which was added when price talk initially changed.

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.

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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