Fogo de Chao ups first-lien loan to $182.5 million, flexes pricing

By Sara Rosenberg

New York, July 3 - Fogo de Chao Churrascaria (Holdings) LLC upsized its seven-year first-lien term loan (B1/B+) to $182.5 million from $180 million and increased pricing to Libor plus 625 basis points from Libor plus 575 bps, according to a market source.

In addition, the original issue discount was widened to 97 from 98, the source said, adding that the upsizing to the term loan will pay for the increased discount.

The 1.25% Libor floor and 101 soft call protection for one year were left unchanged.

As for the $70 million 71/2-year second-lien term loan (Caa1/B-), it saw pricing move to Libor plus 950 bps from Libor plus 900 bps and the discount widen to 96 from 97, the source continued.

The second-lien loan continues to have a 1.5% Libor floor and hard call protection of 103 in year one, 102 in year two and 101 in year three.

The company's now $277.5 million credit facility, up from $275 million, also provides for a $25 million five-year revolver (B1/B+).

Comments on the credit agreement are due on July 10, and allocations are expected to go out on July 11, the source added.

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

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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