Bank of America, Goldman Sachs and Credit Suisse acted as joint bookrunners and joint lead arrangers on a new $720 million term loan for Utz Brands, with Bank of America serving as administrative agent.
Utz initially contemplated a $310 million add-on to an existing term loan B due 2024, but following investor demand, Utz placed a new $720 million term loan B due 2028, enabling the company to extend its maturity profile and reset certain terms of its credit agreement.
The new term loan, together with approximately $181 million in cash proceeds received from the redemption of all outstanding public warrants and forward purchase warrants, repaid a $490 million bridge credit facility used to fund the acquisition of Truco Enterprises and the On The Border brand in full, as well as refinanced a pre-existing $410 million term loan B due 2024.
The new term loan was launched at LIBOR + 350 bps with a 0% Floor and 99.25-99.50 OID, but with the order book multiple times oversubscribed, pricing was finalized at LIBOR + 300 bps with 0% Floor and 99.75 OID.
“This refinancing lowers our expected cash interest costs by $3.6 million annually, lengthens the company’s maturity profile by three years and provides our business with additional financial flexibility to support our continued long-term growth,” Cary Devore, executive vice president and CFO of Utz, said. “We are very pleased with this outcome and are thankful for the continued support of our banking partners and debt holders. We also welcomed a significant number of high-quality new debt holders to the company.”
As part of the refinancing, the size of Utz’s ABL revolving credit facility due 2024 was increased from $116 million to $161 million.
