RugsUSA lifts spread on $500 million term loan to Libor plus 550 bps

By Sara Rosenberg

New York, Oct. 8 – RugsUSA (Runner Buyer Inc.) increased pricing on its $500 million seven-year senior secured term loan B (B2/B) to Libor plus 550 basis points from Libor plus 500 bps, according to a market source.

Also, the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 0.75% Libor floor and an original issue discount of 99.

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

Final commitments were scheduled to be due at 3 p.m. ET on Friday, 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.

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