Fogo de Chao sets talk on first-, second-lien term loans with launch

By Sara Rosenberg

New York, June 18 - Fogo de Chao Churrascaria (Holdings) LLC released price talk on its first-lien and second-lien term loans as the debt launched with a bank meeting on Monday morning, according to a market source.

The $180 million seven-year first-lien term loan is being talked at Libor plus 575 basis points with a 1.25% Libor floor and an original issue discount of 98, and the $70 million 71/2-year second-lien term loan is talked at Libor plus 900 bps with a 1.5% floor and a discount of 97, the source said.

Included in the first-lien loan is 101 soft call protection for one year, and the second-lien term loan has hard call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

The company's $275 million credit facility also provides for a $25 million five-year revolver.

J.P. Morgan Securities LLC and Jefferies Finance LLC are leading the deal.

Commitments are due on July 2.

Proceeds will be used to help fund the acquisition of the company by Thomas H. Lee Partners LP from GP Investments Ltd.

Closing on the buyout is expected in the third quarter, subject to regulatory approvals and other customary conditions.

Fogo de Chao is a Dallas-based steakhouse chain in the United States and Brazil.

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