1-800 Contacts details structure and price talk on $194 million credit facility

By Sara Rosenberg

New York, Sept. 3 - 1-800 Contacts Inc. came out with details on the structure and price talk on its $194 million credit facility that is scheduled to launch with a bank meeting on Thursday, according to a market source.

JPMorgan is the lead bank on the deal.

The facility consists of a $15 million revolver and a $179 million first-lien term loan, with both tranches talked at Libor plus 395 basis points with a 3.75% Libor floor, the source said.

The term loan has 101 soft call protection for one year.

Three-B corporate ratings are currently expected.

Proceeds will be used to back the buyout of the company by Fenway Partners LLC, which was already completed about a year ago.

When that buyout was announced, it was said that the company was getting a $235 million senior secured credit facility, consisting 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.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.