Fairway Market upsizes term loan to $175 million, reduces pricing

By Sara Rosenberg

New York, Feb. 25 - Fairway Market LLC increased its six-year term loan to $175 million from $150 million and lowered pricing and original issue discount on the entire facility, according to a market source.

Pricing on the term loan, as well as on a $25 million five-year revolver, is Libor plus 600 basis points, down from Libor plus 700 bps, and the original issue discount is 99, versus 98 previously, the source said.

The 1.5% Libor floor on the two tranches was left unchanged.

The commitment deadline remained at 5 p.m. ET on Friday.

Credit Suisse, Bank of America Merrill Lynch and Jefferies are the lead banks on the $200 million deal, up from $175 million, with Credit Suisse the left lead.

The facility includes a full covenant package.

Proceeds will be used to refinance an existing credit facility and provide some cash for future store expansion. The additional proceeds from the term loan upsizing will be used to repay subordinated debt.

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

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