RugsUSA launches $500 million term loan B at Libor plus 500 bps

By Sara Rosenberg

New York, Sept. 23 – RugsUSA (Runner Buyer Inc.) launched on Thursday its $500 million seven-year senior secured term loan B (B2/B) with price talk of Libor plus 500 basis points with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months.

Barclays, Jefferies LLC, Deutsche Bank Securities Inc. and Stifel are the joint bookrunners on the deal. Barclays is the administrative agent.

Commitments are due at 5 p.m. ET on Oct. 7, the source added.

Proceeds will be used to help fund the buyout of the company by Francisco Partners from Comvest Partners.

Closing is expected this year.

Koorosh Yaraghi, founder of RugsUSA, and Comvest Partners will retain a minority stake in the company.

RugsUSA is an e-commerce provider of area rugs and home decor products.

© 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.