Spencer Spirit sets $385 million term B at Libor plus 600 bps

By Sara Rosenberg

New York, June 12 – Spencer Spirit IH LLC firmed pricing on its $385 million covenant-lite term loan B (B2/B) due June 2026 at Libor plus 600 basis points, the high end of the Libor plus 575 bps to 600 bps talk, according to a market source.

Also, the 101 soft call protection on the term loan was extended to one year from six months, and amortization was increased to 5% in 2020 and 3% per annum thereafter from 1% per annum, the source said.

Furthermore, MFN sunset was eliminated, asset sale step-downs were removed and the excess cash flow sweep was increased to 75% with leverage-based step-downs.

The term loan still has a 0% Libor floor and an original issue discount of 99.

Guggenheim and Wells Fargo Securities LLC are the bookrunners on the deal. Citizens Bank and TD Securities (USA) LLC are co-managers. Wells Fargo is the agent.

Recommitments are due at noon ET on Thursday, the source added.

Proceeds will be used to refinance existing debt.

Spencer is an Egg Harbor Township, N.J.-based specialty retailer focused on lifestyle accessories and specialized Halloween merchandise.

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