Pierre Foods tapped Wachovia Securities and Bank of America for a $100 million add-on to its senior secured term loan "B" last week. The add-on will be used to finance the acquisition of Zartic for approximately $94 million, announced Nov. 5. Pricing for the add-on could not be determined.
The existing deal hit the market in June 2004 and comprised a $40 million revolver and a $150 million term loan "B" priced at LIBOR plus 2 3/4% and LIBOR plus 2 1/2%, respectively (LMW, 7/18/2004). The company's debt leverage at the time was 5.3 times.
Cincinnati-based Pierre Foods produces a complete line of fully cooked beef, pork, chicken, turkey and bakery products for schools, vending machines and convenience store markets. Zartic, headquartered in Rome, Ga., manufactures, sells, delivers and distributes a variety of food items including packaged beef, poultry, pork and veal products. Joe Meyers, v.p. finance, declined comment. A Zartic representative could not be reached.