FullBeauty finalizes $820 million first-lien term loan OID at 93

By Sara Rosenberg

New York, Oct. 15 – FullBeauty Brands firmed the original issue discount on its $820 million seven-year first-lien term loan (B1/B-) at 93, the tight end of the revised 92 to 93 talk but wide of initial talk of 99, according to a market source.

Pricing on the first-lien term loan is Libor plus 475 basis points with a 1% Libor floor, and the debt has 101 soft call protection for one year.

Earlier in syndication, the spread on the first-lien term loan was increased from Libor plus 450 bps and the call protection was extended from six months.

The company’s $1,265,000,000 credit facility also includes a $100 million asset-based revolver and a $345 million eight-year second-lien term loan (Caa1/CCC).

The revolver was recently downsized from $125 million.

Pricing on the second-lien term loan is Libor plus 900 bps with a 1% Libor floor and an original issue discount of 87, and the debt is non-callable for one year, then at 102 in year two and 101 in year three.

Previously, pricing on the second-lien term loan was lifted from Libor plus 850 bps, the discount widened from talk of 98 to 98.5 and the call protection was revised from 102 in year one and 101 in year two.

Other changes made earlier in syndication included removing the MFN sunset and lifting the excess cash flow sweep to 75%.

J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Jefferies Finance LLC and Deutsche Bank Securities Inc. are the lead banks on the debt, with JPMorgan the left lead on the first-lien loan and Goldman the left lead on the second-lien loan.

Proceeds will be used to help fund the buyout of the company by Apax Partners LLP from Charlesbank Capital Partners and Webster Capital.

Closing is expected during the fourth quarter, subject to customary conditions.

Following the closing of the transaction, Charlesbank will maintain a substantial ownership interest in the company.

FullBeauty Brands is a New York-based catalog retailer and online marketplace for plus-size consumers.

© 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.