Fogo de Chao lifts term loan to $325 million, flexes pricing lower

By Sara Rosenberg

New York, March 21 – Fogo de Chao Inc. upsized its seven-year covenant-light first-lien term loan to $325 million from $300 million and reduced pricing to Libor plus 450 basis points from talk in the range of Libor plus 500 bps to 525 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99.5 from 99, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $365 million of senior secured credit facilities, up from $340 million, also include a $40 million revolver.

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

Commitments continued to be due at 5 p.m. ET on Wednesday, the source continued.

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 equity, the amount of which is being reduced with the term loan upsizing, another source added.

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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