Bank of America is set to launch this week syndication of a $470 million credit backing the leveraged buyout of Minneapolis-based Michael Foods, Inc., and has signed Bear Stearns on as syndication agent. The deal, sponsored by Vestar Capital Partners and Goldner Hawn Johnson & Morrison, will fund the transaction valued at roughly $800 million. Calls to the sponsors were not returned by press time.
The credit comprises a $100 million revolver priced at LIBOR plus 3%; a $125 million term loan "A" priced at LIBOR plus 3%; and a $245 million term loan "B" priced at LIBOR plus 3 1/2%.
The LBO is based on a $30.10 per share price and roughly $200 million of the $800 million represents refinanced debt obligations. Vestar and GHJ&M have committed to provide approximately $165 million of the $215 million equity requirement. Michael Foods is a producer and distributor of specialty egg, potato, and dairy products.