Hostess tightens OID on $83 million incremental term loan to 99.75

By Sara Rosenberg

New York, Nov. 17 – Hostess Holdco LLC modified the original issue discount on its $83 million incremental covenant-light first-lien term loan due August 2022 to 99.75 from 99.5, according to a market source.

Pricing on the incremental term loan and on the repricing of the company’s existing $916 million covenant-light first-lien term loan due August 2022 is still Libor plus 300 basis points with a 1% Libor floor.

As before, the repricing is offered with a par issue price, and all of the first-lien term loan debt will get 101 soft call protection for six months.

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 (B1/BB-).

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

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.

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

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