Focus Brands plans to launch $435 million credit facility on Monday

By Sara Rosenberg

New York, Feb. 2 - Focus Brands Inc. is scheduled to hold a bank meeting on Monday to launch a proposed $435 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 $15 million five-year revolver, a $290 million six-year first-lien term loan B and a $130 million 61/2-year second-lien term loan, the source said.

Both the revolver and the term loan B are talked at Libor plus 550 basis points with a 1.25% Libor floor, the source said. The revolver has a 75 bps unused fee and the term loan B is being offered at an original issue discount of 98.

Meanwhile, the second-lien term loan is being talked at Libor plus 900 bps with a 1.25% Libor floor and an original issue discount of 98, the source continued.

Call protection on the term loan B is 101 soft call for one year, and on the second-lien loan is 103 in year one, 102 in year two and 101 in year three.

Proceeds will be used to repay existing bank debt and fund a dividend.

First-lien leverage will be 4.0 times, and second-lien leverage will be 5.8 times, the source added.

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

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