Spencer Spirit to launch $110 million first-lien term loan on Thursday

By Sara Rosenberg

New York, June 10 – Spencer Spirit is scheduled to hold a lender call at 11 a.m. ET on Thursday to launch a $110 million incremental six-year first-lien term loan, according to market sources.

The company is also getting a $135 million 6.5-year second-lien term loan that has been placed already.

Credit Suisse Securities (USA) LLC, Guggenheim and Wells Fargo Securities LLC are the bookrunners on the deal, with Credit Suisse the left lead on the first-lien loan, Guggenheim the left lead on the second-lien loan and Wells Fargo the administrative agent on both tranches.

Price talk on the first-lien loan is Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99.5, and pricing on the second-lien loan is Libor plus 825 bps with a 1% Libor floor, sources continued.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan is non-callable for one year, then at 102 in year two and 101 in year three.

Proceeds will be used to refinance existing debt, reprice an existing first-lien term loan from Libor plus 450 bps with a 1% Libor floor and redeem a minority interest in the company from ACON.

The borrowers are Spencer Gifts LLC and Spirit Halloween Superstores.

Commitments are due on June 18, sources added.

Spencer is an Egg Harbor Township, N.J.-based specialty retailer focused on lifestyle accessories and specialized Halloween merchandise.

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