CSM Bakery sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, May 8 - CSM Bakery Supplies came out with price talk on its first- and second-lien term loans in connection with its Wednesday bank meeting, according to a market source.

The $650 million seven-year first-lien term loan is talked at Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, and the $200 million eight-year second-lien term loan is talked at Libor plus 750 bps to 775 bps with a 1% Libor floor and an original issue discount of 98, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company's $1 billion senior secured credit facility also includes a $150 million five-year asset-based revolver.

Commitments are due at noon ET on May 22, the source added.

Morgan Stanley Senior Funding, Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., RBC Capital Markets and MCS Capital Markets LLC are the joint lead arrangers on the deal.

Proceeds will be used to help fund the €1.05 billion acquisition of CSM Bakery Supplies by Rhone Capital LLC from CSM NV, to refinance existing debt and to pay related fees and expenses.

Closing is expected in the third quarter, subject to regulatory clearance.

CSM Bakery is a supplier of bakery products.

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