Roundy's launches $800 million facility at Libor plus 500 bps

By Sara Rosenberg

New York, Jan. 26 - Roundy's Supermarkets Inc. launched its $800 million senior credit facility on Thursday with price talk of Libor plus 500 basis points with a 1.25% Libor floor, according to a market source.

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

The B loan is being offered at an original issue discount of 98 and has 101 repricing protection for one year as well as covenants, the source said.

Commitments are due on Feb. 3.

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

The new facility 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 of first-lien loan debt and $150 million of second-lien debt.

Roundy's is a Milwaukee, Wis.-based supermarket chain.

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