Hostess to launch $999 million in first-lien term loan debt Wednesday

By Sara Rosenberg

New York, Nov. 8 – Hostess Holdco LLC is scheduled to hold a lender call at 10:30 a.m. ET on Wednesday to launch an $83 million incremental covenant-light first-lien term loan due August 2022 and a repricing of its existing $916 million covenant-light first-lien term loan due August 2022, according to a market source.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., UBS Investment Bank, Morgan Stanley Senior Funding Inc. and RBC Capital Markets are the leads on the deal.

Price talk on the term loan debt is Libor plus 300 basis points with a 1% Libor floor, the source said.

The incremental loan is talked with an original issue discount of 99.5 and the repricing is talked with a par issue price.

All of the first-lien term loan debt will get 101 soft call protection for six months.

Proceeds from the incremental term loan will be used to refinance remaining second-lien debt, and the repricing will take the existing term loan down from Libor plus 350 bps with a 1% Libor floor.

Commitments are due on Nov. 16, the source added.

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

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