January 20, 2017 11:53 PM ET

Food Products

Company Overview of Hostess Brands, LLC

Company Overview

Hostess Brands, LLC produces and supplies crème-filled snack cakes. Its products include cupcakes, donuts, dingdongs, zingers, mini muffins, fruit pies, jumbo honey buns, coffee cakes, cinnamon rolls, and other American treats. Hostess Brands, LLC was formerly known as New HB Acquisition LLC and changed its name to Hostess Brands, LLC in May 2013. The company was founded in 2013 and is based in Kansas City, Missouri. As of November 4, 2016, Hostess Brands, LLC operates as a subsidiary of Gores Holdings, Inc.

P.O. Box 419593

Kansas City, MO 64141

United States

Founded in 2013

Phone:

816-701-4600

Key Executives for Hostess Brands, LLC

Chief Executive Officer and President
Age: 56
Executive Chairman
Age: 70
Compensation as of Fiscal Year 2016.

Hostess Brands, LLC Key Developments

Hostess Brands, LLC and Hostess Brands, LLC Enter into the Incremental Assumption and Amendment Agreement to the First Lien Credit Agreement

On November 18, 2016, HB Holdings, LLC (“Holdings”), Hostess Brands, LLC (the “Borrower”), the subsidiary loan parties party thereto, and Hostess Holdco, LLC (“Parent Holdco”), each of which is an indirect subsidiary of Hostess Brands Inc. (the “Registrant”), Credit Suisse AG, Cayman Islands Branch, as administrative agent (the “First Lien Administrative Agent”) and the lenders party thereto (the “First Lien Lenders”) entered into the Incremental Assumption and Amendment Agreement (the “Incremental Assumption and Amendment”) to the First Lien Credit Agreement, dated as of August 3, 2015, among Holdings, the Borrower, the First Lien Administrative Agent and the lenders from time to time party thereto (the “First Lien Credit Agreement”). Pursuant to the Incremental Assumption and Amendment, the First Lien Lenders made $915,750,000 aggregate principal amount of refinancing term loans (the “Refinancing Term Loans”) and $83,000,000 aggregate principal amount of incremental term loans (the “Incremental Term Loans”) to the Borrower under the First Lien Credit Agreement. The proceeds from the Refinancing Term Loans were used to repay in full the outstanding principal amount of Term B Loans under the First Lien Credit Agreement and the proceeds from the Incremental Term Loans were used to repay in full all amounts outstanding under the Second Lien Credit Agreement, dated as of August 3, 2015 (the “Second Lien Credit Agreement”), among Holdings, the Borrower, Credit Suisse AG, Cayman Islands Branch as Administrative Agent, and the other lenders party thereto and to pay certain fees and expenses incurred in connection with the foregoing (collectively, the “Refinancing”). On November 18, 2016, immediately following the Refinancing, Holdings, the Borrower, the First Lien Administrative Agent and the First Lien Lenders agreed to amend and restate the First Lien Credit Agreement (as amended and restated, the “Amended and Restated First Lien Credit Agreement”). The Amended and Restated First Lien Credit Agreement provides for the Refinancing Term Loans, the Incremental Term Loans (together, the “Term Loans”) and revolving loans in an aggregate principal amount of up to $100,000,000 (the “Revolving Loans”). Interest on the Term Loans is paid quarterly at a rate, at the Borrower’s option, of either (a) LIBOR (subject to a LIBOR floor of 1.00% per annum) plus an applicable margin of 3.00% per annum or (b) the base rate plus an applicable margin of 2.00% per annum. The Term Loans are repayable on the last day of each March, June, September and December in an amount equal to 0.25% of the aggregate Term Loan principal amount and a balloon payment of the remainder at its maturity date of August 3, 2022. Interest on Revolving Loan borrowings is, at the Borrower’s option, either (a) LIBOR (subject to a LIBOR floor of 0.00% per annum) plus an applicable margin of between 3.00%, 3.25% or 3.50% per annum, depending on the net first lien leverage ratio (as defined in the Amended and Restated First Lien Credit Agreement) or (b) the base rate plus an applicable margin of 2.00%, 2.25% or 2.50% per annum, depending on the net first lien leverage ratio. The Revolving Loans have a commitment fee, payable quarterly, of 0.375% or 0.50% per annum (depending on the net first lien leverage ratio) based upon the unused portion of the then-outstanding commitments with respect to the Revolving Loans. The Revolving Loans have a stated maturity date of August 3, 2020. The Term Loans and the Revolving Loans are secured by liens on (x) the equity interests of the Borrower, and (y) substantially all present and future assets of the Borrower and its respective subsidiaries that guarantee the Term Loans. The Amended and Restated First Lien Credit Agreement contains customary provisions relating to mandatory prepayments, voluntary payments, and affirmative and negative covenants, including limitations on indebtedness, liens, sale and lease-back transactions, restricted payments and transactions with affiliates. In addition, with respect to the Revolving Loans only, the Amended and Restated First Lien Credit Agreement requires that the Borrower and its subsidiaries not permit the net first lien leverage ratio to exceed 7.30 to 1.00 on the last day of any fiscal quarter on which the aggregate amount of outstanding Revolving Loans (excluding letters of credit) on such date exceeds an amount equal to 30% of the then-outstanding commitments with respect to the Revolving Loans. The Amended and Restated First Lien Credit Agreement also contains customary events of default. If an event of default occurs, the administrative agent is entitled to take various actions on behalf of the First Lien Lenders, including the acceleration of amounts due under the Amended and Restated First Lien Credit Agreement, termination of commitments thereunder and all other actions permitted to be taken by a secured creditor.

Hostess Plans To List

Hostess Brands, LLC plans to list. Daniel Acker/Bloomberg News reported Hostess Brands, LLC plans to become a publicly listed company and return to a market that had once left it for dead. Hostess Brands is back with a vengeance, with new plans to become a publicly listed company and return to a market that had once left it for dead. The deal, announced this week, would give the maker of Twinkies, CupCakes and Ding Dongs a market value of roughly $2.3 billion.

Hostess Seeks Acquisitions

Hostess charted its ambitions to complete its post-bankruptcy turnaround, announcing plans to make a public market debut through a reverse merger with a listed acquisition company.

Similar Private Companies By Industry

Company Name Region
\EV RANCH LLLP United States
1-2-3 Gluten Free, Inc. United States
18th Street Deli, Inc. United States
2 Chicks with Chocolate, Inc. United States
2 P Cattle Co. United States

Recent Private Companies Transactions

Type
Date
Target
Merger/Acquisition
July 5, 2016
--
Merger/Acquisition
June 1, 2016
Superior Cake Products, Inc.
 

The information and data displayed in this profile are created and managed by S&P Global Market Intelligence, a division of S&P Global. Bloomberg.com does not create or control the content. For inquiries, please contact S&P Global Market Intelligence directly by clicking here.

Stock Quotes

Market data is delayed at least 15 minutes.

Company Lookup

Most Searched Private Companies

Company Name Geographic Region
Lawyers Committee for Civil Rights Under Law United States
Bertelsmann AG Europe
Bloomberg L.P. United States
The Advertising Council, Inc. United States
Rush University United States

Sponsored Financial Commentaries

Sponsored Links

Request Profile Update

Only a company representative may request an update for the company profile. Documentation will be required.

To contact Hostess Brands, LLC, please visit hostessbrands.com. Company data is provided by S&P Global Market Intelligence. Please use this form to report any data issues.

Please enter your information in the following field(s):
Update Needed*

All data changes require verification from public sources. Please include the correct value or values and a source where we can verify.

Your requested update has been submitted

Our data partners will research the update request and update the information on this page if necessary. Research and follow-up could take several weeks. If you have questions, you can contact them at bwwebmaster@businessweek.com.