Quirch Foods finalizes $475 million term B at Libor plus 525 bps

By Sara Rosenberg

New York, Oct. 19 – Quirch Foods LLC firmed pricing on its $475 million seven-year senior secured first-lien term loan B (B3/B) at Libor plus 525 basis points, the low end of the Libor plus 525 bps to 550 bps talk, according to a market source.

The term loan still has a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for six months.

The company also plans on getting a $200 million ABL revolving credit facility.

RBC Capital Markets Corp. is the left lead arranger on the deal.

Proceeds will be used to help fund the acquisition of Colorado Boxed Beef Co. from Altamont Capital Partners.

Other funds for the transaction will come from equity from Palladium Equity Partners, Quirch Foods’ current sponsor, and rollover equity from Colorado Boxed Beef management and Altamont.

Closing is expected this month.

Currently, Quirch Foods has a $163 million first-lien term loan B priced at Libor plus 575 bps with a step-up to Libor 600 bps based on leverage.

Quirch Foods is a Coral Gables, Fla.-based specialty protein supplier to chain grocery stores. Colorado Boxed Beef is a Lakeland, Fla.-based protein supplier to chain grocery stores, foodservice distributors and other customers in large markets.

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