Flynn Restaurant updates first- and second-lien term loan pricing

By Sara Rosenberg

New York, June 22 – Flynn Restaurant Group LP increased pricing on its $400 million seven-year covenant-light first-lien term loan (B2/B) to Libor plus 350 basis points from talk in the Libor plus 325 bps area and firmed the spread on its $100 million eight-year covenant-light second-lien term loan (Caa2/CCC+) at Libor plus 700 bps, the high end of the Libor plus 675 bps to 700 bps talk, according to a market source.

As before, the first-lien term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and talk on the second-lien term loan has a 0% Libor floor, a discount of 99 and 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.

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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