U.S. Foodservice to launch $350 million term loan Tuesday afternoon

By Sara Rosenberg

New York, Nov. 26 - U.S. Foodservice Inc. is scheduled to hold a conference call at 2 p.m. ET on Tuesday to launch a $350 million term loan due 2017, according to a market source.

Pricing on the loan is Libor plus 425 basis points with a 1.5% Libor floor, in line with existing extended term loan pricing, the source said. The original issue discount is still to be determined.

The new loan will be fungible with the existing extended term loan tranche.

Proceeds will be used to repay non-extended term loan debt due in 2014.

Existing lenders can treat the transaction as a simple extension, and new lenders can come into the deal through the replacement lender language provided in the existing credit agreement to enable the take-out of lenders who do not wish to extend, the source explained.

Citigroup Global Markets Inc. is the lead bank on the deal.

U.S. Foodservice is a Columbia, Md.-based broadline foodservice distributor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.