1-800 Contacts details new $235 million facility for buyout by Fenway

By Sara Rosenberg

New York, June 26 - 1-800 Contacts Inc. detailed the financing package for its buyout by Fenway Partners, LLC, including plans for a new $235 million senior secured credit facility, according to a PREM14A filed with the Securities and Exchange Commission Tuesday.

JPMorgan is the lead bank on the deal.

The facility consists of a $20 million six-year revolver expected at Libor plus 275 basis points, a $140 million seven-year first-lien term loan expected at Libor plus 275 bps and a $75 million 71/2-year second-lien term loan expected at Libor plus 625 bps.

The second-lien term loan will have call protection of 102 in year one and 101 in year two.

Other buyout financing will come from $144.535 million in equity.

Under the agreement, Fenway will acquire the company for $24.25 per share. The total value of the transaction is about $340 million.

The transaction is expected to close during the second half of fiscal 2007, subject to stockholder approval, as well as other customary closing conditions, including regulatory approvals.

1-800 Contacts is a Draper, Utah, direct marketer of replacement contact lenses.

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