Smart Balance to fund acquisition with $280 million credit facility

By Angela McDaniels

Tacoma, Wash., May 31 - Smart Balance, Inc. plans to get a new $280 million senior secured credit facility that will include a $40 million revolver, according to a company news release.

The new facility will be used to fund the company's planned acquisition of Udi's Healthy Foods, LLC and to refinance existing outstanding debt.

BMO Capital Markets and Citigroup will act as joint lead arrangers.

Smart Balance agreed to acquire Udi's Health Foods for $125 million in cash. It expects the acquisition to close in July, at which point it expects its long-term debt to be about $240 million.

Smart Balance is a Paramus, N.J.-based distributor of health foods. Udi's Healthy Foods makes gluten-free foods and is based in Denver.

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