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El Pollo Loco adjusts tranche sizes, sets price talk on upsized $287.5 million debt package
By Paul A. Harris and Sara Rosenberg
Portland, Ore., June 23 - El Pollo Loco Inc. adjusted the tranche sizes and set price talk for its upsized $287.5 million debt refinancing package on Thursday, according to an informed source.
The Costa Mesa, Calif.-based restaurant operator downsized its 61/2-year second-lien senior secured private notes offering to $105 million from $110 million.
Price talk on the notes is 12½% cash plus 4½% PIK, offered at a price of 97, yielding in the 17.8% area.
The notes are non-callable for two years, then at 104 in year three and 102 in year four, whereas before, they were non-callable for two years, then at 103 in year three and 101½ in year four.
El Pollo Loco also lifted its six-year first-lien term loan (B) to $170 million from $160 million and raised pricing to Libor plus 775 basis points from talk of Libor plus 600 bps to 650 bps.
Also, the original issue discount on the term loan widened to 97 from 98, the source said.
The 1.5% Libor floor was left unchanged.
The term loan is now non-callable for one year, then at 105 in year two, 102 in year three and 101 in year four. Previously, it was non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four.
El Pollo Loco's now $182.5 million senior secured credit facility, up from $172.5 million, still includes a $12.5 million five-year revolver (B+).
Pricing on the revolver is Libor plus 775 bps with no Libor floor and an original issue discount of 98, the source continued.
Commitments are due at 5 p.m. ET on Monday.
The overall size of the debt financing is increased by $5 million.
Jefferies & Co. Inc. is the placement agent for the notes and the arranger for the credit facility.
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