Gabe’s trims term loan to $200 million, flexes to Libor plus 700 bps

By Sara Rosenberg

New York, Oct. 18 – Gabe’s (Mountaineer Merger Corp.) downsized its seven-year senior secured first-lien term loan to $200 million from $250 million and increased pricing to Libor plus 700 basis points from Libor plus 600 bps, according to a market source.

Also, the original issue discount on the term loan was revised to 97 from 98 and amortization was revised to 5% per annum from 2.5% per annum, the source said.

Furthermore, a first-lien net leverage ratio covenant was added to the previously covenant-lite term loan and some changes were made to documentation.

The term loan still has a 0.75% Libor floor and hard call protection of 102 in year one and 101 in year two.

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

Commitments are due at 5 p.m. ET on Tuesday, the 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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