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AdvancePierre ups second-lien to $375 million, cuts first-lien OID
By Sara Rosenberg
New York, Oct. 3 - AdvancePierre Foods upsized its five-year covenant-light second-lien term loan (CCC+) to $375 million from $350 million and revised the original issue discount on its $925 million 43/4-year covenant-light first-lien term loan (B1/B) to 99¼ from 99, according to a market source.
Pricing on the first-lien term loan is Libor plus 450 basis points with a 1.25% Libor floor, and there is 101 soft call protection for one year. Earlier, the loan was increased from $825 million and pricing was reduced from Libor plus 475 bps.
Meanwhile, the second-lien term loan is priced at Libor plus 825 bps with a 1.25% Libor floor and an original issue discount of 98, after firming at the wide end of the 98 to 99 talk, the source said. This tranche was added to the capital structure when the first-lien term loan was upsized.
The second-lien loan is noncallable for one year, then at 103 in year two, 102 in year three and 101 in year four.
The company's now $1.45 billion credit facility also includes a $150 million asset-based revolver.
Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, BMO Capital Markets Corp. and Morgan Stanley Senior Funding Inc. are the lead banks on the deal.
Proceeds will be used to refinance debt and fund a dividend.
The additional first-lien funds and the new second-lien loan were used to replace a proposed $450 million senior notes offering that was going to help fund the dividend recapitalization as well, and the second-lien upsizing is increasing the size of that dividend.
AdvancePierre is a Cincinnati-based supplier of value-added protein and handheld convenience products to the food service, school, retail, club, vending and convenience store channels.
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