Fairway readies launch of $300 million credit facility for Thursday

By Sara Rosenberg

New York, Aug. 1 - Fairway Group Acquisition Co. will be holding a bank meeting at 2 p.m. ET on Thursday to launch a proposed $300 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facility consists of a $40 million five-year revolver and a $260 million six-year first-lien term loan, the source said.

Price talk on the term loan is Libor plus 700 basis points with a 1.5% Libor floor and an original issue discount of 98, the source added.

Also, there is 101 repricing protection for one year on the term loan.

Proceeds will be used to refinance existing debt and add cash to the balance sheet.

Fairway is a supermarket chain with locations in New York, New Jersey and Connecticut.

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