Pinnacle Foods launches $550 million loan at Libor plus 350 bps area

By Sara Rosenberg

New York, Jan. 6 – Pinnacle Foods Inc. launched on Wednesday a $550 million incremental term loan (BB+) with price talk in the Libor plus 350 basis points area with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Bank of America Merrill Lynch, Barclays and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Boulder Brands Inc. for $11.00 per share, in a transaction valued at about $975 million, including around $265 million of net debt.

The company had received a commitment for an up to $900 million incremental term loan for the acquisition, but is opting to issue $350 million in notes instead of using all term loan debt.

Other funds for the transaction will come from cash on hand.

Closing is expected this quarter, subject to customary conditions.

Pinnacle Foods is a Parsippany, N.J.-based producer, marketer and distributor of branded food products. Boulder Brands is a Boulder, Colo.-based manufacturer of a portfolio of health and wellness brands.

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