Fairway Group Acquisition increases term loan amount to $275 million

By Sara Rosenberg

New York, Feb. 11 - Fairway Group Acquisition Co. upsized its first-lien term loan due August 2018 to $275 million from $265 million, according to a market source.

Pricing on the loan is Libor plus 550 basis points with a 1.25% Libor floor and a par offer price.

The loan has 101 repricing protection for one year.

Proceeds will be used to reprice an existing term loan from Libor plus 675 bps with a 1.5% Libor floor, and, because of the upsizing, to repay a $7 million subordinated note and add $3 million to the balance sheet, the source added.

With the repricing, existing lenders are getting paid out at 101.

Credit Suisse Securities (USA) LLC, Bank of America Merrill Lynch and Jefferies & Co. are the lead banks on the deal.

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

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