Wells Enterprises firms $185 million term loan at Libor plus 300 bps

By Sara Rosenberg

New York, Sept. 20 – Wells Enterprises Inc. finalized pricing on its $185 million add-on covenant-lite term loan B (B1/BB-) due 2025 at Libor plus 300 basis points, the low end of the Libor plus 300 bps to 325 bps talk, and added a step-down to Libor plus 275 bps when issuer ratings are Ba3/BB- with stable outlooks or better, according to a market source.

Furthermore, the original issue discount on the term loan was tightened to 99.75 from 99.5, the source said.

The add-on term loan still has a 0% Libor floor, 101 soft call protection for six months, which will be added to the existing term loan as well, and amortization of 1% per annum.

Security is a first-lien on substantially all tangible and intangible assets, except accounts receivable and inventory pledged to support the ABL revolver, and a second-lien on ABL collateral.

BMO Capital Markets is the lead arranger on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Friday, the source added.

Proceeds will be used to fund the acquisition of the Halo Top ice cream brand from Eden Creamery LLC.

Closing is expected on Sept. 27.

Wells Enterprises is a Le Mars, Iowa-based ice cream and frozen treat manufacturer.

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