Focus Brands revises offer price on add-on first-lien loan to par

By Sara Rosenberg

New York, Dec. 6 - Focus Brands Inc. changed the offer price on its $91 million add-on first-lien term loan to par from 991/2, according to market source.

Pricing on the first-lien add-on, as well as on the existing loan, is Libor plus 500 basis points with a 1.25% Libor floor.

With this transaction, the 101 soft call protection on the existing first-lien term loan is being extended by six months to August 2013. This call premium will apply to the add-on as well.

The company is also getting a $50 million add-on second-lien term loan that is priced at Libor plus 900 bps with a 1.25% Libor floor, in line with existing second-lien pricing. This new debt is still being offered at an original issue discount of 991/2.

The second-lien add-on will have the same call protection as the existing second-lien loan debt, which is 103 through February 2013, 102 for the following year and 101 for the year after that.

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

Proceeds from the new debt will be used to fund a dividend.

First-lien leverage is 4.5 times and total leverage is 6.5 times.

In connection with the add-ons, the company is seeking an amendment to its existing credit facility to allow for the dividend and revise covenants.

Lenders are being offered a 10 bps amendment fee.

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

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