rue21's $544 million term loan B prices at Libor plus 462.5 bps

By Sara Rosenberg

New York, Oct. 4 - rue21 inc. upsized its seven-year term loan B to $544 million from $533 million, set pricing at Libor plus 462.5 basis points, versus initial talk of Libor plus 450 bps to 475 bps, and revised original issue discount guidance to 80 to 82 from 99, according to sources.

Also, the 101 soft call protection was extended to one year from six months, sources said.

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

J.P. Morgan Securities LLC and Bank of America Merrill Lynch are the co-lead arrangers and bookrunners with Goldman Sachs Bank USA on the deal.

Proceeds will be used to help fund the buyout of the company by Apax Partners for $42.00 per share, or about $1.1 billion.

The company's $694 million credit facility also includes a $150 million five-year asset-based revolver.

Closing on the buyout is expected this month.

rue21 is a Warrendale, Pa.-based retailer of girls and guys apparel and accessories.

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