Merisant, maker of Equal, gets $20 mln DIP financing

NEW YORK Jan 12 (Reuters) - Merisant Worldwide Inc [MERWO.UL], the bankrupt maker of Equal low-calorie sweetener, said on Monday it obtained $20 million of debtor-in-possession financing from Wayzata Investment Partners to fund operations while it restructures debt.

Additionally, Merisant said it is also in discussions to reorganize its 9-1/2 percent senior subordinated notes. If approved by the bankruptcy court, the restructuring would "significantly" deleverage its balance sheet, the company said.

The closely held, Chicago-based company and five affiliates filed for protection from creditors with the U.S. Bankruptcy Court in Wilmington, Delaware, on Jan. 9.

Merisant had seen market share decline in recent years amid competition from rival sweeteners, including Splenda, which is made by Tate & Lyle Plc (TATE.L) and marketed by McNeil Nutritionals, a unit of Johnson & Johnson (JNJ.N).

Merisant sought bankruptcy protection after being unable to refinance debt maturing on Jan. 11, Moody's Investors Service said. Sales totaled $277 million in the year ended Sept. 30, but Merisant's debt load was "unsustainable," Moody's said.

Merisant said it had $137.1 million of debt as of Nov. 30, 2008, while its Merisant Co unit had $331.1 million of assets and $560.7 million of debt on that date, court filings show.

The filing came less than a month after federal regulators cleared the way for Coca-Cola Co (KO.N) and PepsiCo Inc (PEP.N) to begin using natural, calorie-free sweeteners derived from the stevia plant.

PepsiCo moved to launch drinks with PureVia, a stevia-based sweetener it developed with Merisant, while Coca-Cola developed its own sweetener, Truvia, with Cargill Inc [CARG.UL].

Merisant, which also makes sweetener Canderel, said it will go ahead with its planned launch of PureVia in partnership with PepsiCo.

Merisant was formed in March 2000 from the sale of Monsanto Co's (MON.N) tabletop sweetener business to a group of private investors. (Reporting by Chelsea Emery, additional reporting by Jonathan Stempel; Editing by Steve Orlofsky)