Simply Good launches $460 million term loan at Libor plus 400 bps

By Sara Rosenberg

New York, Oct. 17 – Simply Good Foods Co. (Atkins Nutritional Holdings Inc.) launched on Thursday its $460 million incremental first-lien term loan B (B1/B+) due July 7, 2024 with price talk of Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

The incremental term loan has 101 soft call protection for six months, the source said.

Barclays, Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., Deutsche Bank Securities Inc. and BMO Capital Markets are the bookrunners on the deal.

Commitments are due at 5 p.m. ET on Oct. 31, the source added.

Proceeds will be used to help fund the acquisition of Quest Nutrition LLC for $1 billion in cash, or about $870 million net of tax benefits, on a cash-free and debt-free basis.

Other funds for the transaction will come from cash on the balance sheet and equity.

Closing is expected by year-end, subject to customary conditions and regulatory clearance.

Simply Good is a Denver-based developer, marketer and seller of nutritional foods and snacking products. Quest Nutrition is an El Segundo, Calif.-based healthy lifestyle food company.

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