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Four Seasons firms $850 million term loan B at SOFR plus 325 bps
By Sara Rosenberg
New York, Nov. 16 – Four Seasons Hotels and Resorts set pricing on its $850 million seven-year senior secured first-lien term loan B (Ba3/BB+) at SOFR plus 325 basis points, the low end of the SOFR plus 325 bps to 350 bps talk, according to a market source.
Also, the original issue discount talk on the term loan was revised to a range of 98 to 98.5 from 97, the source said.
The term loan still has 10 bps CSA, a 0.5% floor, 101 soft call protection for six months and amortization of 1% per annum.
Mandatory prepayments are from 50% of excess cash flow, subject to leverage-based step-downs, 100% of asset sale proceeds, subject to reinvestment rights, and 100% of debt issuance proceeds, subject to customary baskets.
Security is a first priority pledge on the accounts receivable, inter-company debt receivables and intellectual property of Four Seasons Hotels Ltd., and the capital stock of the borrowers, the guarantors and certain other entities but excluding the capital stock of Four Seasons Holdings Inc. and Dragonfire Holding Ltd., subject to customary exceptions.
Citigroup Global Markets Inc. and Morgan Stanley Senior Funding Inc. are the joint lead arrangers on the deal. Citigroup is the administrative agent.
Commitments continue to be due at noon ET on Thursday, the source added. Cashless roll signature pages continued to be due at 5 p.m. ET on Wednesday.
Proceeds will be used to refinance an existing senior secured first-lien term loan due November 2023 and pay related fees and expenses.
Closing is expected on Nov. 30.
Four Seasons is a Toronto-based luxury hotels company.
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