Hostess Brands enters $100 million revolver at Libor plus 225 bps

By Sarah Lizee

Olympia, Wash., Oct. 3 – Hostess Brands, Inc. subsidiary Hostess Brands, LLC refinanced loans under its under its amended and restated third-lien credit agreement, including $100 million of revolving commitments, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate for revolving loans was changed to Libor plus 225 basis points, which is 125 bps lower than the previous rate.

The commitment fee is 37.5 bps when the net first-lien leverage ratio is less than 4.5 times and 50 bps when it is greater than 4.5 times.

The maturity date for the revolver was extended to Aug. 3, 2024.

The refinancing included a $979 million covenant-lite first-lien term loan (B1/BB-) due August 2025, as previously reported.

Credit Suisse Loan Funding LLC, Citibank, NA, BofA Securities, Inc., Nomura Securities International, Inc. and Morgan Stanley Senior Funding, Inc. are joint lead arrangers and joint bookrunners, with Credit Suisse as administrative agent.

The revolver was undrawn at close.

The borrower paid about $8 million in lender and third-party fees related to the refinancing.

Hostess is a Kansas City, Mo.-based sweet baked goods company.

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