B&G Foods plans $500 million loan for Green Giant and Le Sueur buy

By Sara Rosenberg

New York, Sept. 3 – B&G Foods Inc. plans on getting a roughly $500 million incremental term loan to help fund its acquisition of the Green Giant and Le Sueur brands from General Mills Inc. for about $765 million, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Barclays, Bank of America Merrill Lynch and RBC Capital Markets are the lead banks on the incremental loan.

Other funds for the transaction will come from borrowings under the company’s existing $500 million undrawn revolving credit facility.

Pro forma for the acquisition, net leverage will be about 5.6 times.

Closing is expected in the fourth quarter, subject to customary conditions, including the receipt of regulatory approvals.

The company estimates that following a six- to 12-month transition period, the Green Giant and Le Sueur brands will generate on an annualized basis net sales of about $550 million, adjusted EBITDA of around $95 million to $100 million and earnings per share of $0.60.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable foods. The Green Giant and Le Sueur brands are leaders in the frozen and canned vegetables market.

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