OTG EXP plans $325 million five-year credit facility in two tranches

By Wendy Van Sickle

Columbus, Ohio, Jan. 7 – OTG EXP, Inc. expects to enter into a new five-year senior secured credit facility consisting of a $200 million term loan facility and a $125 million revolving credit facility, according to an S-1 filed with the Securities and Exchange Commission.

The revolver is expected to be able to be increased up to $200 million if the company meets certain performance standards, and the company expects it will also have an option for an additional $60 million to be raised in incremental facilities.

Morgan Stanley Senior Funding, Inc., Credit Suisse AG and Credit Suisse Securities (USA) LLC will lead the debt.

The company expects the facility will have a floating interest rate.

Proceeds are expected to be available at the same time as proceeds from the company’s initial public offering of common stock proposed in the filing.

OTG plans to use proceeds of the stock offering to repay and terminate its existing credit facility.

As of Sept. 27, the company had $228.2 million borrowed under the existing facility.

“We expect to have a lower cost of debt as a result of the repayment of our existing indebtedness and our entry into the new credit facility, but we expect our interest expense to increase as we borrow additional amounts in the future to fund opening new locations at existing and new terminals and airports,” the company said in the filing.

The New York-based airport food and beverage operator has restaurant and retail concepts in 10 North American airports.

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