Advance Pierre ups spread on second-lien loan to Libor plus 950 bps

By Sara Rosenberg

New York, Sept. 21 - Advance Pierre Foods lifted price talk on its $230 million second-lien term loan to Libor plus 950 basis points from Libor plus 875 bps, according to sources.

Also, call protection was sweetened to non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, changed from 103 in year one, 102 in year two and 101 in year three, sources said.

The 1.75% Libor floor and original issue discount of 98 were left unchanged.

The company's $1.14 billion credit facility also includes a $75 million ABL revolver and an $835 million first-lien term loan (B1/B+).

There were no changes to the first-lien term loan, which is talked at Libor plus 525 bps with a 1.75% Libor floor, a discount of 98 and 101 soft call protection for one year.

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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