Ollie’s Bargain Outlet gets term loan, revolver totaling $300 million

By Marisa Wong

Morgantown, W.Va., Feb. 2 – Ollie’s Bargain Outlet Holdings, Inc.’s subsidiaries, Ollie’s Holdings, Inc., Ollie’s Bargain Outlet, Inc. and Bargain Parent, Inc., entered a credit agreement on Jan. 29 for a $200 million term loan and a $100 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

Manufacturers and Traders Trust Co. is the sole lead arranger and bookrunner and administrative agent with KeyBank NA as syndication agent and Citizens Bank of Pennsylvania as documentation agent.

The term loan and the revolver, which includes a $25 million sub-facility for letters of credit and a $25 million sub-facility for swingline loans, both mature on Jan. 29, 2021.

The term loan is subject to amortization, payable in quarterly installments of $1.25 million until Jan. 29, 2018 and $2.5 million after that.

The remaining advances are payable at maturity.

The term loan and the revolver bear interest at Libor plus a margin of between 175 basis points and 225 bps, depending on the company’s total leverage ratio. Until the delivery of the initial financial statements under the credit agreement, the facility bears interest at Libor plus 225 bps.

In addition, the borrower will pay an unused commitment fee of between 25 bps and 37.5 bps on the undrawn commitments, also depending on the total leverage ratio.

The credit agreement includes some negative and financial covenants.

At closing, Ollie’s borrowed $200 million of term loans. The company used the loan proceeds, together with cash on hand, to repay its previous credit facilities, including term loans and a revolver that were scheduled to mature on Sept. 28, 2019 and Sept. 28, 2017, respectively.

There were no outstanding borrowings under revolver as of the closing date. However, some letters of credit that were issued under the previous revolver were rolled into the new revolver.

The previous facilities were terminated following their repayment.

Ollie’s is a Harrisburg, Pa.-based retailer of closeouts, excess inventory and salvage merchandise.

© 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.