Advance Pierre Foods sets pricing for $1.14 billion credit facility

By Paul A. Harris

St. Louis, Sept. 7 - Advance Pierre Foods set pricing for its $1.14 billion credit facility on Tuesday, according to an informed source.

The $835 million first-lien term loan is talk at Libor plus 525 basis points with a 1¾% Libor floor at 98.00. The first-lien term loan features a 101 soft call.

Meanwhile the $230 million second-lien term loan is talked at Libor plus 875 bps with a 1¾% Libor floor at 98.

The bank deal, which also features a $75 million ABL revolver, is set to launch at a Wednesday bank meeting.

Credit Suisse, Barclays Capital, Morgan Stanley and BMO Capital Markets are the lead banks on the deal, with Credit Suisse the left lead.

The facility is being obtained in connection with the creation of the company through the merger of Pierre Foods Inc., Advance Food Co. Inc. and Advance Brands LLC.

Following completion of the merger, Oaktree Capital Management, the current majority shareholder of Pierre Foods, will maintain a majority share of the combined company. The current shareholders of Advance Food, the Allen and McLaughlin families, will own a minority share of the combined company.

Advance Pierre Foods will be a Cincinnati-based supplier of value-added protein and handheld convenience food products to the foodservice, school, retail, club, vending and convenience store channels.

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