OSI launches $80 million term loan add-on to fund higher purchase price

By Sara Rosenberg

New York, June 8 - OSI Restaurant Partners Inc. launched an $80 million add-on to its seven-year term loan to investors on Friday morning, which would give the tranche a new size of $1.31 billion, due to the increase in the company's leveraged buyout purchase price, according to a market source.

The term loan is priced at Libor plus 225 basis points, with a step down to Libor plus 200 bps at a B1 corporate rating.

Commitments are due Monday at noon ET and closing is targeted for June 13.

OSI is being bought 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, according to a trader.

In May, OSI had to delay its special meeting of stockholders twice so as to gain more time to solicit additional votes in favor of the LBO, and then after increasing the price to $41.15 per share in cash from $40.00 per share, stockholders finally approved the transaction.

The company's LBO financing credit facility had already allocated and freed up for trading before the stockholder drama had begun.

This now $1.56 billion, up from $1.48 billion, senior secured credit facility (B1/BB-) also includes a $150 million six-year revolver at Libor plus 250 bps and a $100 million six-year pre-funded revolver at Libor plus 225 bps, with a step down to Libor plus 200 bps at B1 corporate rating.

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

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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