OSI Restaurant details structure on $1.33 billion credit facility ahead of Friday launch

By Sara Rosenberg

New York, April 11 - OSI Restaurant Partners Inc. came out with official tranching on its proposed $1.33 billion senior secured credit facility as the deal is getting ready to launch with a bank meeting on Friday at 10 a.m. ET, 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 $1.08 billion seven-year term loan, a $150 million six-year revolver and a $100 million six-year pre-funded revolver, the source said.

By comparison, filings with the Securities and Exchange Commission had the total deal size at $1.35 billion, consisting of a $1.1 billion seven-year term loan and a $250 million six-year revolver.

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 high-yield notes, real estate financings and 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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