Abercrombie & Fitch cuts term B to $300 million, increases pricing

By Sara Rosenberg

New York, July 31 – Abercrombie & Fitch Co. downsized its seven-year term loan B to $300 million from $325 million and lifted pricing to Libor plus 375 basis points from Libor plus 350 bps, according to a market source.

Also, the Libor floor on the term loan was increased to 1% from 0.75% and the 18-month MFN sunset provision was eliminated, the source said.

The term loan B still has 101 soft call protection for six months.

The company’s now $700 million credit facility, down from $725 million, also provides for a $400 million five-year asset-based revolver.

Wells Fargo Securities LLC, PNC Capital Markets LLC, J.P. Morgan Securities LLC and Goldman Sachs Lending Partners are the joint lead arrangers and bookrunners on the term loan B, and Wells Fargo, PNC and JPMorgan are the joint lead arrangers and bookrunners on the revolver.

Proceeds will be used to refinance an existing credit facility that includes a $350 million unsecured revolver due July 27, 2016 and a $131.5 million term loan A due Feb. 23, 2017 and for general corporate purposes, including potential share repurchases.

Abercrombie & Fitch is a New Albany, Ohio-based retailer of casual apparel for men, women and kids.

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