Four Seasons Hotels details $1.1 billion credit facility with launch

By Sara Rosenberg

New York, June 13 - Four Seasons Hotels and Resorts came out with tranching and price talk on its $1.1 billion credit facility that was launched with a bank meeting at 2 p.m. ET in New York on Thursday, according to a market source.

The facility consists of a $100 million revolver (BB-), a $750 million seven-year first-lien term loan (BB-) and a $250 million 71/2-year second-lien term loan (B-).

Price talk on the first-lien term loan is Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 600 bps to 625 bps with a 1% Libor floor and a discount of 98, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Amortization on the first-lien term loan is 1% per annum, with the remainder due at maturity.

Mandatory prepayments include 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.

Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Commitments are due on June 20, the source added.

Four Seasons is a Toronto-based luxury hotels company.

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