Tacala sets talk on $85 million of incremental term loans with launch

By Sara Rosenberg

New York, Nov. 9 – Tacala Cos. released price talk on its $85 million of incremental term loans in connection with its lender call on Monday, according to a market source.

The fungible $65 million incremental first-lien term loan (B-) is talked at Libor plus 375 basis points to 400 bps with a 0.75% Libor floor and an original issue discount of 99, and the fungible $20 million incremental second-lien term loan (CCC) is talked at Libor plus 775 bps with a 0.75% Libor floor and a discount of 99, the source said.

KKR Capital Markets and Wells Fargo Securities LLC are the joint lead arrangers on the deal.

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

Proceeds will be used for a dividend recapitalization.

With this transaction, pricing on the existing $420 million first-lien term loan will be revised from Libor plus 325 bps with a 0% Libor floor to match the incremental loan pricing, and pricing on the existing $140 million second-lien term loan will be changed from Libor plus 750 bps with a 0% Libor floor to match the incremental loan pricing.

Tacala is a Vestavia Hills, Ala.-based franchise operator of Taco Bell restaurants.

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