Pierre Foods to launch $145 million five-year term loan on Tuesday

By Sara Rosenberg

New York, Sept. 17 - Pierre Foods Inc. is scheduled to hold a bank meeting on Tuesday to launch its proposed $145 million five-year term loan, according to a market source.

Deutsche Bank is the lead bank on the deal.

The term loan is talked at Libor plus 600 basis points with a 2.5% Libor floor and an original issue discount of 96, the source said.

Amortization is 5% in years one and two, 10% in years three and four and 70% in year five.

In addition, the company is getting a $30 million revolver that is being led by Wells Fargo Foothill, the source remarked.

Proceeds will be used to refinance loans that the company's owner, Oaktree Capital Management LP, has in place.

Pierre Foods is a Cincinnati, Ohio-based producer of fully cooked beef, pork, chicken, turkey, peanut butter and bakery products for school, foodservice, retail, vending and convenience store markets.

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