Oxford Industries $295 million revolver retail launch expected May 15

By Sara Rosenberg

New York, April 28 - Oxford Industries Inc. is expected to hold the retail launch of its $295 million senior secured revolver on May 15, according to a syndicate source. SunTrust Capital Markets Inc. and Merrill Lynch Capital are the joint lead arrangers on the deal.

Over the next two weeks, the syndicate is focusing on "putting some agents together" and then the deal will presented for general syndication, according to the syndicate source. The general syndication process is expected to continue until the facility closes in early June.

The proposed revolver has a tenor of five years. Price talk is Libor plus 250 basis points, the source said.

Proceeds from the revolver will be used in part to help fund the acquisition of all of the outstanding capital stock of Viewpoint International Inc., owner of the Tommy Bahama brand, in a transaction valued at up to $325 million consisting of $240 million in cash, $10 million in Oxford stock and up to $75 million in contingent payments.

Asked why the company opted to seek a new revolver as opposed to using term loans to help fund the transaction, the syndicate source responded: "It's a consumer business. Because it deals with apparel your debt usage is seasonal. A revolver lends itself more to the up and down seasonal borrowing of the business."

In addition, the company plans to selling $175 million of senior notes via Merrill Lynch & Co. and SunTrust to help fund the acquisition, and cash on hand will be used as well.

Oxford Industries is an Atlanta manufacturer and marketer of branded and private label apparel. Viewpoint is a Seattle designer and marketer of relaxed sportswear.

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