True Religion gives first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, July 9 - True Religion Apparel Inc. disclosed price talk on its first- and second-lien term loans in connection with its Tuesday morning bank meeting, according to market sources.

The $375 million seven-year first-lien covenant-light term loan is talked at Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, and the $110 million eight-year second-lien covenant-light term loan is talked at Libor plus 825 bps with a 1% Libor floor and a discount of 981/2, sources said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $535 million senior secured credit facility also provides for a $50 million asset-based revolver.

Commitments are due on July 23, sources added.

Deutsche Bank Securities Inc., Jefferies Finance LLC, UBS Securities LLC and Macquarie Capital (USA) Inc. are leading the financing.

Proceeds will be used to help fund the company's buyout by TowerBrook Capital Partners LP for $32 per share in cash in a transaction valued at about $835 million.

Other funds for the buyout are expected to come from up to $175 million in equity and cash on hand.

Closing is expected in the third quarter, subject to shareholder approval, regulatory approvals and other customary conditions.

True Religion is a Vernon, Calif.-based jeans and jeans-related sportswear company.

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