Raley’s raises spread on $200 million term loan to Libor plus 625 bps

By Sara Rosenberg

New York, May 11 – Raley’s increased pricing on its $200 million seven-year term loan (B3/B+) to Libor plus 625 basis points from Libor plus 550 bps, according to a market source.

In addition, the original issue discount on the term loan widened to 98 from 99, and the call protection was changed to a hard call of 102 in year one and 101 in year two from a 101 soft call for one year, the source said.

The term loan still has a 1% Libor floor.

Wells Fargo Securities LLC is the lead bank on the deal.

Along with the term loan, the company is getting a $200 million five-year asset-based revolver and a $43 million 10-year subordinated seller note.

Proceeds will be used to help fund the buyout of the company by Michael Teel, the current chief executive officer.

Raley’s is a West Sacramento, Calif.-based supermarket chain.

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