Ollie's Bargain Outlet launches $50 million add-on, loan repricing

By Sara Rosenberg

New York, Feb. 19 - Ollie's Bargain Outlet launched on Tuesday a $50 million add-on term loan and a repricing of its existing $225 million covenant-light term loan, according to a market source.

Talk on the add-on and the repricing is Libor plus 400 basis points with a 1.25% Libor floor and a par offer price, the source said.

By comparison, current term loan pricing is Libor plus 500 bps with a 1.25% Libor floor.

Both the add-on and the repricing have 101 soft call protection through Sept. 28, 2013.

With the repricing, existing lenders will be paid out at 101.

Proceeds from the add-on will be used to redeem shares held by financial sponsor CCMP Capital Advisors, the source added.

Pro forma leverage is 4.3 times net of cash.

Commitments are due on Friday.

Jefferies Finance LLC is leading the deal.

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

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