Bank of America has cooked up a new $295 million credit for American Italian Pasta Co. The deal, which hit the market last Wednesday, consists of a five-year, $265 million term loan and a five-year, $30 million revolver. Both tranches are priced at LIBOR plus 6%. AIP is using the transaction to refinance an older $290 million facility which would expire in October. The company was in default on that credit.
In August, AIP failed to file forms with the Securities and Exchange Commission, which led to an investigation by the SEC. The investigation and failure to file caused the company to default on the $290 million credit. In response, AIP brought in legal counsel and accounting experts to examine the possibility of accounting fraud within the company. AIP also said that there may be inaccuracies with its financial reports going back three-and-a-half years, according to a release.
Based in Kansas City, Mo., American Italian Pasta produces and markets dry pasta. AIP has plants in four locations, Excelsior Springs, Mo., Columbia, S.C., Tolleson, Ariz. and Verolanuova, Italy. Bankers at B of A declined to comment. Calls to George Shadid, executive v.p and cfo, were not returned.