Ollie's Bargain Outlet to launch $300 million facility on Sept. 12

By Sara Rosenberg

New York, Sept. 5 - Ollie's Bargain Outlet will hold a bank meeting on Sept. 12 to launch a proposed $300 million senior secured credit facility, according to a market source.

Jefferies Finance LLC, M&T Bank and KeyBanc Capital Markets are leading the deal.

The facility consists of a $75 million ABL revolver and a $225 million term loan, the source said.

Proceeds will be used to help fund the buyout of the company by CCMP Capital Advisors LLC from KarpReilly LLC for about $700 million.

At close, $25 million will be funded under the revolver.

Equity for the transaction, including new and rollover, will be around $465 million.

Total leverage will be around the low-to-mid 4 times context, the source added.

Expected ratings are in the mid-single B area.

Ollie's Bargain Outlet is a Harrisburg, Pa.-based retailer of closeouts, excess inventory and salvage merchandise.

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