(Bloomberg) -- A group of private credit lenders led by Silver Point Capital provided an US$862 million loan that in part supports Sweet Oak’s acquisition of Whole Earth Brands Inc., according to a news release Friday.
Sweet Oak, which closed on the takeover earlier this week and already owned the Royal Oak charcoal brand, picked the direct-lending option over an $800 million leveraged loan that UBS Group AG approached investors with earlier this year.
Pricing on the new senior secured financing was 5.75 percentage points over the Secured Overnight Financing Rate and issued at a discounted price of 98 cents on the dollar, according to a person with knowledge of the matter who asked not to be named discussing a private transaction. Early price talk on the UBS proposal was in the low-to-mid four percentage point range, Bloomberg reported in May.
Whole Earth, a sweetener maker, announced its buyout agreement in February. Rhône Group became a minority owner of Sweet Oak under the deal, while Mariposa Capital — the family office of serial dealmaker Martin Franklin — remains majority shareholder.
Representatives for Silver Point, Rhône, UBS, Sweet Oak and Mariposa all declined to comment.
The new loan will replace a $375 million direct lending facility that Silver Point and Fortress Investment Group’s lending arm agreed to provide earlier this year. That loan had a margin of six percentage points over SOFR.
Fortress Credit served as a co-lead arranger of the new financing, and lenders including Cerberus Capital Management and Monarch Alternative Capital also participated, according to Friday’s statement. Representatives for Fortress, Cerberus and Monarch didn’t reply to requests for comment.
The credit facility will also refinance a Royal Oak leveraged loan that was repriced in 2021. The margin on that $389 million loan was 3.75 percentage points over a benchmark rate.
With assistance from Carmen Arroyo.
©2024 Bloomberg L.P.
