FleetBoston is syndicating a $250 million deal for natural food producer Hain Celestial Group that the company will use to finance acquisitions and refinance some of its outstanding debt. Gary Jacobs, cfo, said the company is looking for the deal to close by the end of March. Jacobs said the company selected FleetBoston as lead arranger because the company has a longstanding relationship with the bank and Fleet provides the company with its cash management services.
Jacobs would not comment on pricing but confirmed that SunTrust and HSBC signed on as co-arrangers. Currently, the company has a temporary $50 million facility in place that Fleet set up for the company as it waits for the close of the new loan. Prior to the temporary credit, Fleet provided the company with a $100 million facility to finance its acquisition of NNG Company in May 1999. Market sources said the facility comprises a $100 million, 364-day revolver and a $150 million, four-year tranche with pricing set at LIBOR plus 1%.
Hain Celestial is based in Uniondale, N.Y. and markets natural foods including Health Valley, Weight Watchers, and Terra Chips. In January Hain bought Fruit Chips, a Dutch producer of snack chips for $8.3 million.