CBRL Group $1.25 billion credit facility to launch March 20 week

By Sara Rosenberg

New York, March 17 - CBRL Group Inc. is planning to hold a bank meeting towards the end of the week of March 20 to launch its proposed $1.25 billion senior secured credit facility, a company spokesperson told Prospect News on Friday.

Wachovia Securities is the lead bank on the deal.

The facility consists of an $800 million seven-year term loan, a $200 million delayed-draw seven-year final maturity term loan and a $250 million revolver, with initial pricing on the tranches expected at Libor plus 150 basis points, the spokesperson said.

The delayed-draw term loan will carry a commitment fee of 75 bps and the revolver will carry an unused fee of 25 bps.

Proceeds from the $800 million funded term loan will be used to fund a modified Dutch auction tender offer common stock repurchase plan, which is expected to commence in April.

Proceeds from the $200 million delayed-draw term loan may be used next year to refinance convertible debt.

And, the $250 million revolver will be used to replace the company's existing revolver.

Closing on the credit facility is targeted for on or before May 15.

CBRL is a Lebanon, Tenn., operator and developer of restaurant and retail concepts.

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