Give & Go ups spread on $375 million term loan to Libor plus 550 bps

By Sara Rosenberg

New York, July 11 – Give & Go Prepared Foods Corp. increased pricing on its $375 million first-lien covenant-light term loan (B1/B) to Libor plus 550 basis points from talk of Libor plus 450 bps to 475 bps, according to a market source.

Also, the MFN sunset was removed, setting the 50 bps MFN for the life of the deal, and the accordion was changed to $70 million plus unlimited amounts subject to 4 times first-lien net leverage and 5.5 times total net leverage, the source said.

Other changes included eliminating the asset sale step-downs, setting debt incurrence at 4 times first-lien net leverage and 5.5 times total net leverage, and removing the EBITDA grower from the $15 million restricted payment general basket.

In addition, the EBITDA grower was eliminated from the $20 million available amount starter basket and the available amount leverage governor was reduced to 4.75 times from 5 times, the source continued.

The term loan still has a 1% Libor floor and an original issue discount of 99.

Commitments were scheduled to be due at the close of business on Monday, the source added.

Deutsche Bank Securities Inc., Antares Capital, BMO Capital Markets and HSBC Securities (USA) Inc. are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Thomas H. Lee Partners LP from OMERS Private Equity.

Closing is expected in the third quarter, subject to customary conditions.

Give & Go is a Toronto-based manufacturer of value-added baked goods.

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