Lazard Middle Market Advised
Bellisio Foods
in its $195 Million Debt
Recapitalization
TRANSACTION
DESCRIPTION
Lazard Middle
Market advised Bellisio Foods, Inc., a leading manufacturer of frozen food products in North
America, in its $195 million debt recapitalization. Under one
of its main labels, Michelina’s, the Company offers more than 200
varieties of single-serve entrées. The Company’s brand
portfolio includes Michelina’s, Lean Gourmet, Budget Gourmet, Joy of Cooking,
and Fusion Culinary.
TRANSACTION HIGHLIGHTS
The purpose of the transaction was to refinance the
Company’s outstanding debt, including the existing senior secured debt
held by a syndicate of banks. Lazard Middle Market represented Bellisio
Foods, conducting a tightly orchestrated process that yielded a
competitively-priced financing solution for the Company during a period of
unprecedented turmoil in the credit markets.
The new $195 million
debt package includes a $30 million revolver, a $130 million first lien
senior secured term loan, and a $35 million second-lien term loan. GE
Capital Markets and National City Bank acted as co-lead arrangers and
joint bookrunners on the first lien loans, and JPM Mezzanine Capital
provided the second-lien financing with GE Capital Markets acting as sole
lead arranger.
Combined with additional industrial development
bonds issued by the Company, total debt to EBITDA totaled 3.7 times. The
Company’s corporate ratings are B/B1. As a result of the transaction, the
Company substantially extended the maturity profile of its debt, and
significantly increased its operational flexibility.
THE COMPANY
Bellisio Foods, Inc. (www.bellisiofoods.com) is a
leading manufacturer of frozen food products in North America. Under one
of its main labels, Michelina’s, Bellisio offers more than 200 varieties
of single-serve entrées. The brand portfolio includes Michelina’s, Lean
Gourmet, Budget Gourmet, Joy of Cooking, and Fusion Culinary.
ABOUT LAZARD MIDDLE MARKET
Lazard Middle Market
(www.lazardmm.com),
a subsidiary of Lazard (NYSE:LAZ), provides advice on mergers and
acquisitions, restructuring, and financings to the middle market. Formed
in 2007 with Lazard's acquisition of Goldsmith Agio Helms, Lazard
Middle Market has approximately 100 professionals in Minneapolis, New
York, Chicago, Los Angeles, and Charlotte.
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