Green Mountain $1.35 billion facility expected as October business

By Sara Rosenberg

New York, Oct. 14 - Green Mountain Coffee Roasters Inc.'s proposed $1.35 billion senior secured credit facility is expected to come to market some time this month, according to a market source.

Bank of America and SunTrust are the lead banks on the deal.

The facility consists of a $750 million five-year revolver, a $250 million five-year term loan A and a $350 million six-year term loan B.

Upon announcing the deal last month, the company said in a conference call that assuming an interest rate in the 5% to 6% range on the new bank debt is likely a fair guess.

Proceeds will be used to help fund the acquisition of LJVH Holdings Inc. (Van Houtte) and refinance existing debt.

Green Mountain is buying Van Houtte, a Montreal-based gourmet coffee brand, from Littlejohn & Co. LLC for about $890 million.

The transaction is expected to close by the end of the year, subject to customary conditions, including certain regulatory approvals.

Leverage at closing is expected to be 3.5 times. In the long term, the company is targeting leverage of less than 3.0 times.

Green Mountain is a Waterbury, Vt.-based specialty coffee company.

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