1-800 Contacts to launch $580 million credit facility on Wednesday

By Sara Rosenberg

New York, Jan. 4 – 1-800 Contacts Inc. (CNT Holdings III Corp.) is scheduled to hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch a $580 million credit facility, according to a market source.

Credit Suisse Securities (USA) LLC, Barclays and Deutsche Bank Securities Inc. are the lead banks on the deal.

The facility consists of an $80 million five-year revolver and a $500 million seven-year first-lien term loan, the source said.

The term loan is talked with a 1% Libor floor. Spread and original issue discount are not yet available.

Commitments are due at 5 p.m. ET on Jan. 20, the source added.

Proceeds will be used to help fund AEA Investors LP’s acquisition of a majority interest in the company from Thomas H. Lee Partners LP.

Thomas H. Lee Partners will remain a significant shareholder in the company.

1-800 Contacts is a Draper, Utah-based retailer of contact lenses.

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