Daily News: November 21, 2017

Credit Suisse Agents Loan Repricing for Hostess

Hostess Brands repriced its existing first lien term loan, with Credit Suisse serving as administrative agent for the lending group.

The company’s first lien term loan was repriced from LIBOR + 2.50% to LIBOR + 2.25%. No covenants were changed and the first lien term loan will still mature on August 3, 2022. However, under the terms of the new amendment, Hostess expects annualized interest expense savings of approximately $2.5 million that will result in an expected increase of $0.01 of basic and diluted earnings per share.

According to a related 8-K filling, the proceeds from the refinancing will be used to repay in full the existing term loans, as well as pay certain incurred fees and expenses.

“The interest rate reduction on our term loan is a testament to the strength of our financial position and future cash flows,” said Bill Toler, president and CEO of Hostess. “This latest repricing enables us to continue to reduce our cost of capital, support our strategic initiatives and deliver long-term value to shareholders.”