International Market to launch $580 million facility on Thursday

By Sara Rosenberg

New York, July 23 – International Market Centers (IMC OP LP) is set to hold a bank meeting at 10 a.m. ET on Thursday to launch a $580 million credit facility, according to market sources.

The debt consists of a $50 million revolver, a $405 million six-year first-lien term loan and a $125 million seven-year second-lien term loan, sources said.

J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are the lead banks on the deal, with JPMorgan left lead on the first-lien and Deutsche Bank left lead on the second-lien.

Price talk on the first-lien term loan is Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99 to 99˝, and talk on the second-lien term loan is Libor plus 675 bps to 700 bps with a 1% Libor floor and a discount of 99, sources continued.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two with a special IPO equity claw for 100% of the tranche at 101 in year one.

Proceeds will be used to refinance existing mortgage debt and for general corporate purposes.

Ratings are expected in the mid-to-high single B’s, sources added.

International Market Centers is an owner and operator of showroom space for the home furniture, home décor and gift industries.

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