Jo-Ann talks $225 million second-lien loan at Libor plus 900-925 bps

By Sara Rosenberg

New York, April 23 – Jo-Ann Stores LLC launched on Monday its $225 million six-year covenant-light second-lien term loan (Caa1/CCC+) with price talk of Libor plus 900 basis points to 925 bps with a 1% Libor floor and an original issue discount of 98.5, according to a market source.

The term loan has call protection of 102 in year one and 101 in year two, the source said.

Bank of America Merrill Lynch is the lead bank on the deal.

Commitments are due at noon ET on May 1, the source added.

Proceeds will be used with a $58 million draw on the company’s existing $400 million asset-based lending facilities to refinance $274 million HoldCo senior PIK toggle notes.

Jo-Ann Stores is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

© 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.