Fogo de Chao launches $300 million loan at Libor plus 500-525 bps

By Sara Rosenberg

New York, March 13 – Fogo de Chao Inc. launched on Tuesday its $300 million seven-year covenant-light first-lien term loan with price talk of Libor plus 500 basis points to 525 bps with a 1% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $340 million of senior secured credit facilities also include a $40 million revolver.

Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC are the leads on the deal.

Commitments are due at 5 p.m. ET on March 27.

Expected credit facilities ratings are B2/B, the source said.

Proceeds will be used to help fund the buyout of the company by Rhone Capital for $15.75 per share, or about $560 million.

Other funds for the transaction will come from up to $278 million in equity.

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

Fogo de Chao is a Dallas-based steakhouse chain.

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