Kate Spade launches $400 million term loan B at Libor plus 375-400 bps

By Sara Rosenberg

New York. March 27 - Kate Spade & Co. launched on Thursday its $400 million covenant-light term loan B with price talk of Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99 to 991/2, according to sources.

The term loan has 101 soft call protection for six months, source said.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Proceeds will be used to refinance some bonds and pay down ABL credit facility borrowings.

Commitments are due on April 3, sources added.

Kate Spade is a New York-based designer and marketer of accessories and apparel.

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