Garden Ridge lifts spread on $250 million term B to Libor plus 725 bps

By Sara Rosenberg

New York, Sept. 20 - Garden Ridge increased pricing on its $250 million six-year term loan B (B2/B+) to Libor plus 725 basis points from talk of Libor plus 625 bps to 650 bps, according to a market source.

The original issue discount also widened to 93 from 97, and soft call protection was changed to 102 in year one and 101 in year two from just 101 in year one, the source said.

Amortization on the loan is now 5% per year instead of 1% per year, the source added.

As before, the B loan has a 1.5% Libor floor.

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.

Commitments are due on Wednesday.

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

© 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.