Garden Ridge sets original issue discount on $250 million term B at 90

By Sara Rosenberg

New York, Oct. 4 - Garden Ridge widened the original issue discount on its $250 million six-year term loan B (B2/B+) to 90 from revised talk of 93 and initial talk of 97, according to a market source.

Pricing on the B loan is Libor plus 725 basis points with a 1.5% Libor floor. Earlier in syndication, the spread flexed up from talk of Libor plus 625 bps to 650 bps.

The loan includes soft call protection of 102 in year one and 101 in year two, which was sweetened from just 101 in year one at the time of the pricing flex.

Amortization on the loan is 5% per year. This was revised from 1% per year, also at the time of the spread change.

The company's $330 million credit facility also provides for an $80 million ABL revolver.

Bank of America Merrill Lynch and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to fund the buyout of the company by AEA Investors LP.

Garden Ridge is a Houston-based seller of mattresses, ready-to-assemble furniture, discount apparel and handbags and books.

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