Lenox sets structure, price talk on $275 million facility ahead of Thursday launch

By Sara Rosenberg

New York, March 28 - Lenox Group Inc. released structure and price talk on its proposed $275 million credit facility as the deal is getting ready to launch with a bank meeting in New York on Thursday at 2:30 p.m. ET, according to a market source.

The facility consists of a $175 million ABL revolver talked at Libor plus 175 to 225 basis points and a $100 million term loan talked at Libor plus 400 to 425 bps, the source said.

UBS is the lead bank on the deal.

Proceeds will be used to refinance the company's existing revolver and term loan - $106.1 million as of March 23 - and to fund ongoing working capital requirements.

Closing on the new deal is expected to occur before April 30.

Earlier this month, the company said that it was in discussions with the agent under its existing credit facility as well as with other potential lenders regarding a modified or new credit facility.

These discussions were taking place because the company's previously announced waiver of non-compliance with its leverage and interest coverage ratios expires on April 30.

Lenox is an Eden Prairie, Minn.-based tabletop, collectible and giftware company.

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