Orchard Brands sets talk on $230 million in term loans with launch

By Sara Rosenberg

New York, April 25 - Orchard Brands released price talk on its $180 million six-year first-lien term loan (B1) and $50 million 61/2-year second-lien term loan (Caa1) with its Thursday bank meeting, according to a market source.

The first-lien term loan is talked at Libor plus 500 basis points with a 1.25% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 875 bps to 900 bps with a 1.25% floor and a discount of 98, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Commitments are due on May 7, the source added.

Jefferies Finance LLC and Credit Suisse Securities (USA) LLC are the lead banks on the $230 million deal.

Proceeds will be used to refinance existing debt.

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

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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