Ollie's Bargain talks $225 million term loan at Libor plus 550 bps

By Sara Rosenberg

New York, Sept. 12 - Ollie's Bargain Outlet launched its $225 million term loan on Wednesday with price talk of Libor plus 550 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

Commitments are due on Sept. 24.

The company's $300 million senior secured credit facility also includes a $75 million asset-based revolver.

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

Proceeds will be used to help fund CCMP Capital Advisors LLC's buyout of the company 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.

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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