Pinnacle Foods $225 million credit facility to launch Sept. 20

By Sara Rosenberg

New York, Aug. 25 - Pinnacle Foods Corp. will hold a bank meeting on Sept. 20 for its proposed $225 million credit facility, which is being led by JPMorgan and Deutsche, according to a syndicate source.

The facility consists of a $170 million term loan B and $55 million of pro rata bank debt, the source added.

As previously disclosed, proceeds will be used to help fund the acquisition of Pinnacle Foods by JPMorgan Partners in partnership with C. Dean Metropoulos from Hicks, Muse, Tate & Furst Inc. in a transaction valued at $485 million.

It is expected that there will be a high yield bond offering as well to help fund the transaction, with JPMorgan and Deutsche acting as joint bookrunners, according to sources.

Pinnacle Foods is a Cherry Hill, N.J. manufacturer and marketer of branded food products formed by Hicks, Muse, Tate & Furst and C. Dean Metropoulos in 2001 to acquire Swanson frozen foods, Vlasic pickles and condiments, and Open Pit barbeque sauce from Vlasic Foods International.

Goldman Sachs and Deutsche Bank Securities Inc. served as financial advisors to Hicks, Muse, Tate & Furst with respect to this transaction.

The transaction is expected to be completed during the fourth quarter of 2003.

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