| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Conn’s, Inc. > News item |
Conn's $100 million four-year second-lien term loan led by GA Capital
By Sara Rosenberg
New York, Nov. 8 - Conn's Inc.'s $100 million four-year second-lien term loan is being agented by GA Capital LLC, according to a 424B5 filed with the Securities and Exchange Commission on Monday.
Pricing on the term loan is Libor plus 1,150 basis points with a 3% Libor floor.
Call protection on the loan is 105 in year one, 103 in year two, 102 in year three and 101 in year four.
As was previously reported, the company is also upsizing its asset-based facility to $375 million from $210 million and extending the maturity to 2013 from 2011.
The asset-based facility will have a $125 million accordion feature.
Pricing on the asset-based loan is expected to range from Libor plus 375 basis points to 400 bps based on leverage, and the unused fee is expected to range from 50 bps to 75 bps based on utilization.
Financial covenants under the term loan and the asset-based facility include a fixed charge coverage ratio of at least 1.10 to 1.00, and a leverage ratio of not greater than 2.00 to 1.00.
Both the asset-based facility and the second-lien term loan will be subject to a borrowing base.
Proceeds will be used to refinance $320 million of asset-backed securitization facilities.
Other funds for the refinancing will come from a planned rights offering that is anticipated to raise about $25 million of equity capital.
The company said that its weighted average interest rate is going up by roughly 200 bps as a result of these transactions.
The refinancing is being done to provide the flexibility needed to manage operations, officials added in the call.
Conn's is a Beaumont, Texas-based specialty retailer of consumer electronics, home appliances, furniture, mattresses, computers, and lawn and garden products.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.