Roundy's ups spread on $460 million term loan to Libor plus 475 bps

By Sara Rosenberg

New York, Feb. 18 - Roundy's Supermarkets Inc. increased pricing on its $460 million seven-year first-lien covenant-light tem loan (B1/B) to Libor plus 475 basis points from talk of Libor plus 400 bps to 425 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 98 from 99 and the 101 soft call protection was extended to one year from six months, the source said.

Furthermore, the incremental allowance was revised to unlimited subject to 3.25 times first-lien net leverage, from $150 million plus unlimited subject to 3.75 times first-lien net leverage, the source continued.

The term loan still has a 1% Libor floor.

Recommitments were due at 5 p.m. ET on Tuesday.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Bank of America Merrill Lynch and BMO Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance an existing loan that is priced at Libor plus 450 bps with a 1.25% Libor floor.

At the revised yield, the existing loan will be repaid at par instead of at 101, the source added.

Roundy's is a Milwaukee-based supermarket chain.

© 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.