Ascena Retail launches $300 million term B at Libor plus 375-400 bps

By Sara Rosenberg

New York, May 23 - Ascena Retail Group Inc. launched its $300 million six-year term loan B on Wednesday morning (Ba2/BB+) with price talk of Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The loan includes 101 soft call protection for one year, the source said.

Amortization is 1% per year, with the balance due at maturity.

Financial covenants include a maximum senior secured leverage ratio of 1.75 to 1.00.

Commitments are due on June 6.

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to help fund the purchase of Charming Shoppes Inc. for $7.35 per share. The transaction is valued at about $890 million.

Other funds for the transaction will come from a $175 million draw under an existing ABL revolver that is expected to be upsized to $250 million from $200 million.

Pricing on the revolver can range from Libor plus 200 bps to 250 bps.

Closing on the acquisition is expected this quarter, subject to customary conditions and approvals and the tender of at least 80% of the shares.

Ascena is a Suffern, N.Y.-based specialty retailer of apparel for women and tween girls. Charming Shoppes is a Bensalem, Pa.-based retailer specializing in women's plus-size apparel.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.