OSI Restaurant $1.35 billion credit facility expected to launch mid-to-late March

By Sara Rosenberg

New York, Feb. 27 - OSI Restaurant Partners Inc. is anticipated to hold a bank meeting in mid-to-late March to launch its proposed $1.35 billion senior secured credit facility, according to a market source.

Deutsche Bank and Bank of America are the lead banks on the deal, with Deutsche the left lead.

The facility consists of a $1.1 billion seven-year term loan and a $250 million six-year revolving credit facility.

Proceeds will be used to help fund the leveraged buyout of the company by an investor group comprised of Bain Capital Partners, LLC, Catterton Partners and company founders Chris T. Sullivan, Robert D. Basham and J. Timothy Gannon.

The total transaction value, including assumed debt, is $3.2 billion, with OSI stockholders receiving $40.00 per share in cash.

Other LBO financing will come from $800 million of high-yield notes, at least $500 million in real estate financings and $1.003 billion in equity.

Debt to EBITDA is expected to be 6.9 times at close.

OSI is a Tampa, Fla., casual dining restaurant company with a portfolio of brands, including Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar, Roy's, Lee Roy Selmon's, Blue Coral Seafood & Spirits and Cheeseburger in Paradise.

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