1-800 Contacts talks $500 million term loan at Libor plus 450-475 bps

By Sara Rosenberg

New York, Jan. 6 – 1-800 Contacts Inc. (CNT Holdings III Corp.) launched on Wednesday its $500 million seven-year first-lien term loan with price talk of Libor plus 450 basis points to 475 bps with a 1% Libor floor and an original issue discount of 98.5 to 99, according to a market source.

The term loan is also talked with 101 soft call protection for six months, the source said.

The company’s $580 million credit facility also includes an $80 million five-year revolver.

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

Commitments are due at 5 p.m. ET on Jan. 20.

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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