B&G Foods is pricing a $450.0 million tranche B term loan facility under its existing senior secured credit facility.
B&G Foods intends to use the proceeds of the new term loans, together with the net proceeds of B&G Foods’ previously announced offering of $550 million of 5.25% senior notes due 2027, to redeem all of B&G Foods’ outstanding 4.625% senior notes due 2021, repay a portion of B&G Foods’ borrowings under its revolving credit facility, pay related fees and expenses and for general corporate purposes.
The tranche B term loan facility will be issued at a price equal to 99.50% of its face value and will bear interest at a rate of LIBOR plus 2.50%, with a 0.0% LIBOR floor and will have a seven-year maturity. The tranche B term loan facility is expected to close on October 11, 2019, subject to customary closing conditions.
Barclays, Deutsche Bank Securities, RBC Capital Markets, BofA Merrill Lynch, BMO Capital Markets, Goldman Sachs, J.P. Morgan, and Credit Suisse are acting as joint lead arrangers and bookrunners. Capital One Securities, Citigroup, Citizens Capital Markets, Rabo Securities and TD Securities are acting as joint co-documentation agents.
Based in Parsippany, NJ, B&G Foods and its subsidiaries manufacture, sell and distribute high-quality, branded shelf-stable and frozen foods across the U.S., Canada and Puerto Rico.