Bank of New York and CIT Group have jumped in at the agent level to join the $200 million credit for B&G Foods, said executive v.p of finance and cfo, Robert Cantwell. He added that the facility, which is led by Lehman Brothers, was expected to wrap up late last week as LMW went to press. The credit, which will also go toward refinancing $45 million of existing term debt, backs B&G's acquisition of Nestle Prepared Food Co.'s Ortega brand for $116 million. Cantwell said the acquisition will be completed at the close of the bank deal.
The facility includes a $150 million, six-year "B" loan priced at LIBOR plus 31/2% and a $50 million, five-year revolver priced at LIBOR plus 31/4% (see Credit in Focus, page 7). The revolver is expected to be drawn for $11 million to back the deal. A Lehman official declined to comment and BoNY and CIT bankers did not return calls.
Cantwell said the company has a historical relationship with Lehman, BoNY, CIT and FleetBoston Financial, a lender that signed on as a syndication agent ahead of the bank meeting (LMW, 8/18). The firms have been involved with the company as far back as the 1980s, he added. Parsippany, N.J.-based B&G has also issued $220 million in 95/8% senior subordinated notes due 2007 to fund the acquisition. Cantwell said these notes were outstanding, so it is not necessarily a new bond deal. B&G is a manufacturer and distributor of shelf-stable branded food products.