Strong Hostess results prompting dividend payments
NEW YORK — The performance of Hostess Brands Inc. has exceeded expectations, and its private equity owners are looking to extract a nine-figure dividend from the snack cake company, according to Bloomberg News.
A May 15 story from Bloomberg said Apollo Global Management L.L.C. and C. Dean Metropoulos & Co. are seeking a $175 million dividend from Hostess. Bloomberg cited Standard & Poor’s as a source for its story, adding that the dividend is not expected to adversely affect the Hostess B- credit rating. Post dividend, Hostess will have $40 million in cash and $60million in available credit, Bloomberg said.
Apollo and Metropoulos acquired the business in 2013 for $410 million. Since then, Hostess’ cash needs have fallen short of expectations and EBITDA has exceeded estimates, Bloomberg