Focus Brands flexes $600 million term loan to Libor plus 400 bps

By Sara Rosenberg

New York, Sept. 29 – Focus Brands Inc. lowered pricing on its $600 million seven-year covenant-light first-lien term loan to Libor plus 400 basis points from Libor plus 450 bps and added a 25 bps step-down at 4 times first-lien net leverage, according to a market source.

Also, the original issue discount on the term loan firmed at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s $625 million credit facility (B2/B) also includes a $25 million revolver.

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

Commitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used to refinance existing debt.

Focus Brands is an Atlanta-based restaurant franchisor and operator.

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