Kate Spade cuts spread on $400 million term B to Libor plus 300 bps

By Sara Rosenberg

New York, April 4 - Kate Spade & Co. reduced pricing on its $400 million covenant-light term loan B (B2/B) to Libor plus 300 basis points from talk of Libor plus 375 bps to 400 bps, according to sources.

Also, the original issue discount firmed at 991/2, the tight end of the 99 to 99½ guidance, sources said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Recommitments were due at 5p.m. ET on Friday, sources added.

Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Proceeds will be used to refinance some bonds and pay down ABL credit facility borrowings.

Kate Spade is a New York-based designer and marketer of accessories and apparel.

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