Flynn Restaurant releases first- and second-lien term loan price talk

By Sara Rosenberg

New York, June 6 – Flynn Restaurant Group LP announced price talk on its $400 million seven-year covenant-light first-lien term loan (B2/B) and $100 million eight-year covenant-light second-lien term loan (Caa2/CCC+) in connection with its bank meeting on Wednesday, according to a market source.

Talk on the first-lien term loan is in the Libor plus 325 basis points area with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 675 bps to 700 bps with a 0% Libor floor and a discount of 99, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Bank of America Merrill Lynch, Citizens Bank, Fifth Third, KKR Capital Markets and Wells Fargo Securities LLC are the lead arrangers on the $500 million in term loans.

Commitments are due at 5 p.m. ET on June 19, the source added.

Proceeds will be used to refinance existing credit facilities at Bell American and Pan American into a combined structure, repay subordinated debt and fund cash to the balance sheet for future acquisitions and general corporate purposes.

Flynn Restaurant is a San Francisco-based restaurant franchisee operator.

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