Del Taco $220 million term loan prices at Libor plus 450 bps

By Sara Rosenberg

New York, April 23 - Del Taco LLC wrapped syndication of its $220 million term loan at pricing of Libor plus 450 basis points with a 1% Libor floor, according to a market source.

The term loan has a step-down to Libor plus 425 bps if the company gets upgraded to B3 any time after six months from close and has 101 soft call protection for one year, the source said.

Of the total term loan amount, $59.5 million is an add-on that is being used to take out a portion of the company's OpCo mezzanine debt, and the remainder is a repricing of the existing term loan from Libor plus 500 bps with a 1.25% Libor floor.

During syndication, the add-on was upsized by $10 million, the source added.

In addition, with the term loan transaction, the company added a leverage-based pricing grid to its $40 million revolver.

GE Capital Markets is leading the deal.

Del Taco is a Lake Forest, Calif.-based operator and franchiser of restaurants.

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