On the Border gets $94.5 million term loan and $10 million revolver

By Angela McDaniels

Tacoma, Wash., June 4 - OTB Acquisition LLC, which does business as On the Border Mexican Grill & Cantina, entered into a $104.5 million credit facility that includes a $94.5 million five-year term loan and a $10 million five-year revolving credit facility, according to a syndicate source.

GE Capital Markets was lead arranger, lead bookrunner and administrative agent for the loan. RBS Citizens and Bank of America Merrill Lynch were joint lead arrangers and joint bookrunners.

The initial interest rate is Libor plus 450 basis points. The margin over Libor ranges from 350 bps to 450 bps based on the company's leverage.

The financing backs the purchase of the company by Argonne Capital and Fortress Investment Group from Golden Gate Capital.

The source said that the deal launched on May 8 and that non-bookrunner lenders were paid 50 bps on allocation.

On the Border is a Mexican casual dining chain based in Irving, Texas.

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