Focus Brands tightens original issue discount on $285 million loan

By Sara Rosenberg

New York, Nov. 1 - Focus Brands Inc. lowered the original issue discount on its $285 million credit facility (B2/B) to 99 from 981/2, according to a market source.

Pricing on the facility firmed at Libor plus 550 basis points with a 1.75% Libor floor after being flexed up the other week from talk of Libor plus 475 bps to 500 bps.

The facility consists of a $10 million revolver and a $275 million term loan.

As part of Monday's changes, a pricing step-down to Libor plus 525 bps was added to the term loan based on 3.5 times total leverage, the source added.

Recommitments are due at noon ET on Tuesday.

Credit Suisse is the lead bank on the deal.

Proceeds will be used to refinance existing debt and fund the acquisition of Auntie Anne's, a Lancaster, Pa.-based hand-rolled soft pretzel chain.

Focus Brands is an Atlanta-based franchisor and operator of ice cream stores, bakeries, restaurants and cafes.

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