Four Seasons launches $900 million term loan at Libor plus 325 bps

By Sara Rosenberg

New York, Nov. 15 – Four Seasons Hotels and Resorts launched on its lender call on Tuesday a $900 million seven-year senior secured covenant-light first-lien term loan talked at Libor plus 325 basis points with a 0.75% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Incremental allowance is for up to $50 million plus an unlimited amount subject to pro forma total net leverage of 5.25 times.

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.

Citigroup Global Markets Inc. is the lead arranger on the deal.

Commitments are due at 5 p.m. ET on Friday, the source added.

Proceeds will be used to refinance existing debt.

Closing is expected during the week of Nov. 28.

Four Seasons is a Toronto-based luxury hotels company.

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