Focus Brands shifts funds, lowers first-lien term loan pricing

By Sara Rosenberg

New York, Feb. 16 - Focus Brands Inc. upsized its six-year first-lien term loan B (B1/B) to $305 million from $290 million and downsized its 61/2-year second-lien term loan (Caa1/CCC+) to $115 million from $130 million, according to a market source.

Also, pricing on the first-lien term loan B was reduced to Libor plus 500 basis points from Libor plus 550 bps and the original issue discount was tightened to 99 from 98, the source said.

The term loan B still has a 1.25% Libor floor and 101 soft call protection for one year.

Pricing on the second-lien term loan remained in line with initial talk 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 second-lien loan is 103 in year one, 102 in year two and 101 in year three.

The company's $435 million credit facility also includes a $15 million five-year revolver (B1/B).

Recommitments were due at 5 p.m. ET on Thursday.

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

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

Total leverage is 5.8 times.

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

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