Roundy's Supermarket to hold first bank meeting April 22 for $340 million credit facility

By Sara Rosenberg

New York, April 19 - Roundy's Supermarket is scheduled to hold a first round bank meeting for existing lenders only on Monday, April 22 regarding its new $340 million credit facility, a syndicate source said. A second round bank meeting will probably take place in mid-May.

Bear Stearns & Co. and CIBC are co-leads for the offering.

The Pewaukee, Wis. food wholesaler and retailer's new loan consists of a $250 million term B tranche and a $90 million revolver. According to the syndicate, interest rates not currently being revealed to the public. Basically all assets will be used to secure the loan.

Market talk, however has the term portion priced at Libor plus 300 basis points. Also, according to market sources, only $40 million of the revolver will need to be syndicated because Bear Stearns and CIBC are holding onto $25 million each. The syndicate source did not confirm this information.

The credit facility is expected to close by the end of May or early June, according to the syndicate source, depending on whether proxy issues in regards to the leveraged buyout by Willis Stein & Partners work out.

News that Chicago private equity firm Willis Stein & Partners will acquire the company was announced on April 9. The agreement is subject to regulatory and shareholder approval and is expected to be completed in May, according to a company press release.

According to the syndicate, ratings of BB- or better are expected for the credit facility.

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