Roundy's Supermarkets to launch $800 million facility on Thursday

By Sara Rosenberg

New York, Jan. 24 - Roundy's Supermarkets Inc. has set a bank meeting for Thursday afternoon to launch a proposed $800 million senior credit facility, according to a market source.

Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC are the lead banks on the deal.

The facility consists of a $125 million five-year revolver and a $675 million seven-year term loan B, the source said.

Price talk is still to be determined.

The term loan B will have 101 repricing protection for one year and covenants.

The new deal is being done in connection with the company's initial public offering of common stock.

Proceeds from the credit facility and the stock offering will be used to repay the company's existing credit facility, which as of Oct. 1, had $689 million in first-lien loan debt and $150 million in second-lien debt.

Roundy's is a Milwaukee-based supermarket chain.

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