Talbots ups spread on $420 million term loan B to Libor plus 700 bps

By Sara Rosenberg

New York, Nov. 9 – Talbots Inc. raised pricing on its $420 million five-year covenant-light term loan B (B2/B-) to Libor plus 700 basis points from talk in the range of Libor plus 625 bps to 650 bps, according to a market source.

In addition, the original issue discount on the term loan B was changed to 98 from 99, the source said.

The loan still has a 0% Libor floor and is non-callable for one year, then at 102 in year two and par thereafter.

Bank of America Merrill Lynch and KKR Capital Markets are the lead arrangers on the deal.

Proceeds will be used to refinance existing first- and second-lien term loans.

Talbots is a Hingham, Mass.-based multi-channel retailer of women’s apparel.

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