CSM NV (CSM)’s bakery supplies business is seeking $1 billion in loans to back its buyout by Rhone Capital LLC, according to two people with knowledge of the transaction.
CSM Bakery Supplies is proposing to pay interest at 3.75 percentage points to 4 percentage points more than the London interbank offered rate on a $650 million first-lien term portion and 7.5 percentage points to 7.75 percentage points more than Libor on a $200 million second-lien piece, said the people, who asked not to be identified because terms are private. The lending benchmark on both loans will have a 1 percent minimum. Lender commitments are due tomorrow.
Deutsche Bank AG is arranging the financing, which includes a $150 million asset-based revolver, the people said. The first-lien will be offered at 99 cents on the dollar and the second-lien at 98 cents.
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