Bright Food said to offer fees on Weetabix deal loan

China's Bright Food Group Co is believed to be changing the financing arrangements on its planned acquisition of a majority stake in Weetabix Ltd.

According to industry sources, the company now plans to pay fees on a loan backing the acquisition plus a margin totaling about 230 basis points, the sources said.

The company originally offered to pay zero fees to potential lenders and a margin of 230 basis points.

Calls made to confirm the new arrangement, to the offices of Bright Food in Shanghai, went unanswered.

The Shanghai-based food manufacturer, which is seeking about $800 million in financing to back the deal, is believed to be considering issuing a $300 million bond as part of the financing and fund the remainder with bank loans.

China Daily -Agencies