WhiteWave Foods Obtains $500 Million Loan for Earthbound Buyout

WhiteWave Foods Co. (WWAV), the maker of Silk soy milk and Horizon Organic products, obtained a $500 million loan to support its purchase of Earthbound Farm LLC.

The company, which said last month it was buying the U.S. organic food brand for $600 million, used cash, borrowings under its senior credit pact and the new seven-year term loan to complete the acquisition, according to a regulatory filing. Under the agreement, Whitewave may increase its bank facilities by $500 million.

WhiteWave, based in Denver, is purchasing Earthbound from shareholders led by Kainos Capital LLC and founders Drew and Myra Goodman, according to a Dec. 9 statement. WhiteWave plans to operate Earthbound Farm as a separate business unit, based in San Juan Bautista, California.

Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM) and CoBank ACB arranged the financing, according to the filing. The company has $1.29 billion outstanding under its $1.85 billion credit pact.

WhiteWave has $246.9 million under an A-1 term loan that matures in October 2017 and $249.4 million under an A-2 portion that comes due in October 2019, according to data compiled by Bloomberg. The loans, obtained in 2012, began paying interest at 1.75 percentage points and 2 percentage point more than the London interbank offered rate, Bloomberg data show.

Its revolving line of credit, which pays interest at 1.75 percentage points more than Libor, comes due in October 2017.

In a revolving credit line, money can be borrowed again once it’s repaid; in a term loan it can’t. Term loan As are sold to bank lenders.

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

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