Merrill Lynch has been selected to lead a staple-on financing for Code Hennessey & Simmons backing the potential leveraged buyout of Otis Spunkmeyer fromFirst Atlantic Capital. A banker familiar with the deal said Code is in exclusivity talks and is likely to close the deal within a few weeks. Merrill shopped the business and is now likely to provide a $150 million bank deal, pending the sale. There could also be either a mezzanine or high-yield piece to accompany the deal, the banker added. Otis makes frozen cookie dough, pre-baked cookies, muffins, bagels, pastries, and brownies. Estimates of the sale price have been over $260 million. Officials at Merrill declined comment and calls to officials at Code, Hennessey were not returned.