Orchard Brands to launch $230 million in term loans on Thursday

By Sara Rosenberg

New York, April 23 - Orchard Brands will host a bank meeting at 2 p.m. ET on Thursday to launch $230 million in first- and second-lien term loans, according to a market source.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

The debt consists of a $180 million six-year first-lien term loan and a $50 million 61/2-year second-lien term loan, the source said.

Proceeds will be used to refinance existing debt.

Leverage is about 3.5 times through the first-lien loan and 4.5 times total, the source added.

In addition to the term loans, the company is extending its asset-based revolver with PNC Capital Markets LLC to mature in five years.

Orchard Brands is a Beverly, Mass.-based multi-channel marketer of apparel and home products.

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