Arby's trims spread on $335 million term loan to Libor plus 400 bps

By Sara Rosenberg

New York, Nov. 8 - Arby's (ARG IH Corp.) reduced pricing on its $335 million seven-year first-lien term loan to Libor plus 400 basis points from Libor plus 425 bps, according to a market source.

Also, a step-down was added to the term loan to Libor plus 375 bps at 3.5 times net total leverage or B2/B corporate ratings, and the original issue discount was tightened to 99¾ from 99, the source said.

In addition, the 101 soft call protection was shortened to six months from one year, the source continued.

The term loan still has a 1% Libor floor and a maximum net total leverage covenant.

The company's $370 million credit facility (B3/B) also provides for a $35 million five-year revolver.

Recommitments were due at 2 p.m. ET on Friday, the source added.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to fund a dividend to shareholders.

Arby's, owned by Roark Capital, is an Atlanta-based quick-service restaurant chain.

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