Hostess Brands tightens issue price on $994 million term loan to par

By Sara Rosenberg

New York, Nov. 15 – Hostess Brands LLC revised the issue price on its $994 million first-lien term loan (B1/BB-) to par from 99.875 and changed the maturity date to August 2022 from August 2023, according to a market source.

Pricing on the loan is still Libor plus 225 basis points with a 0.75% Libor floor, but a 25 bps ratings-based step-down was eliminated, the source said.

The term loan includes 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC is the left lead bank on the deal.

Proceeds will be used to refinance an existing term loan due August 2022 that is priced at Libor plus 250 bps with a 0.75% Libor floor.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday.

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

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