Ollie's trims spread on $225 million term loan to Libor plus 500 bps

By Sara Rosenberg

New York, Sept. 24 - Ollie's Bargain Outlet reduced pricing on its $225 million term loan (B2/B) to Libor plus 500 basis points from Libor plus 550 bps, according to a market source.

The loan still has a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company's $300 million senior secured credit facility also includes a $75 million asset-based revolver, of which $25 million will be funded at close.

Allocations are expected later this week, the source added.

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

Proceeds, along with around $465 million in new and rollover equity, will fund CCMP Capital Advisors LLC's buyout of the company from KarpReilly LLC for about $700 million.

Total leverage will be in the low-to-mid 4 times context.

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

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