Roundy's Supermarkets seeks $150 million second-lien term loan

By Sara Rosenberg

New York, March 26 - Roundy's Supermarkets Inc. is in market with a $150 million second-lien term loan, according to a market source.

Credit Suisse is the lead bank on the deal that was launched on Thursday.

The second-lien term loan is talked at Libor plus 850 basis points with a 2% Libor floor and an original issue discount of 98, the source said.

The loan also includes call protection of 103 in year one, 102 in year two and 101 in year three.

Proceeds will be used to fund a dividend payment.

In connection with the new deal, the company is seeking an amendment to its first-lien credit facility to allow for the transaction to take place.

Under the amendment, pricing on the first-lien term loan will be increased by 75 basis points, and soft call protection of 102 in year one and 101 in year two will be added, the source remarked.

Furthermore, lenders are being offered a 25 bps amendment fee.

Roundy's is a Milwaukee-based operator of retail grocery stores.

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