CSM Bakery trims second-lien loan to $60 million, widens discount

By Sara Rosenberg

New York, July 29 – CSM Bakery Solutions LLC downsized its second-lien covenant-light tack-on term loan due July 2021 to $60 million from $156 million and widened the original issue discount to 98 from 99, according to a market source.

Pricing on the second-lien term loan remained at Libor plus 775 basis points with a 1% Libor floor, and there is still call protection of 102 in year one and 101 in year two.

The company’s $157 million first-lien covenant-light tack-on term loan due July 2020 is still priced at Libor plus 400 bps with a 1% Libor floor and an original issue discount of 99, and has 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and Morgan Stanley Senior Funding, Inc. are the lead banks on the deal.

Proceeds will be used for a dividend recapitalization.

With this transaction, pricing on the existing $693 million first-lien term loan is being increased from Libor plus 375 bps with a 1% Libor floor and pricing on the existing $150 million second-lien term loan is being increased from Libor plus 750 bps with a 1% Libor floor.

An amendment is being done with this recapitalization for which lenders are being offered a 15 bps consent fee.

Commitments are due at noon ET on Wednesday, the source added.

CSM Bakery is a producer of bakery ingredients and products.

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