B&G Foods talks $300 million term loan B at Libor plus 400 bps

By Sara Rosenberg

New York, Nov. 14 - B&G Foods Inc. is talking its $300 million term loan B at Libor plus 400 basis points with a 1.25% Libor floor and an original issue discount of 98 ahead of its Tuesday bank meeting, according to a market source.

The B loan has 101 soft call protection for one year, the source said.

The company's $500 million senior secured credit facility (BB) also includes a $100 million five-year revolver and a $100 million five-year term loan A that were launched on Nov. 3.

Price talk on the revolver and term loan A is Libor plus 300 bps, with the revolver having a 50 bps unused fee.

Amortization on the term loan A is 5% in year one, 10% in year two, 15% in years three and four and 55% in year five.

Credit Suisse Securities (USA) LLC, Barclays Capital Inc. and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds will be used to fund the acquisition of six brands from Unilever United States Inc. for $325 million and refinance the company's existing senior secured credit facilities.

The brands being purchased include Mrs. Dash, Molly McButter, Sugar Twin, Baker's Joy, Static Guard and Kleen Guard.

Closing is expected before year-end.

B&G Foods is a Parsippany, N.J.-based manufacturer, seller and distributor of shelf-stable food.

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