Gabe’s readies launch of $250 million term loan for Wednesday

By Sara Rosenberg

New York, Sept. 21 – Gabe’s (Mountaineer Merger Corp.) is scheduled to hold a lender call at noon ET on Wednesday to launch a $250 million seven-year senior secured first-lien term loan, according to a market source.

Jefferies LLC and Wells Fargo Securities LLC are the lead arrangers on the deal.

Price talk on the term loan is Libor plus 600 basis points with a 0.75% Libor floor and an original issue discount of 98, the source said.

The term loan has hard call protection of 102 in year one and 101 in year two and amortization of 2.5% per annum.

Commitments are due on Oct. 6, another source added.

Proceeds will be used to refinance existing debt and pay a shareholder distribution.

Gabe’s is an off-price retailer focused on a large, underserved working-class demographic.

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