Les Schwab Tire to launch $301 million add-on term loan on Tuesday

By Sara Rosenberg

New York, Feb. 7 – Les Schwab Tire Centers is scheduled to hold a lender call at 10 a.m. ET on Tuesday to launch a fungible $301 million add-on term loan due 2027 (B), according to a market source.

JPMorgan Chase Bank is the lead on the deal.

Pricing on the add-on term loan is Libor plus 325 basis points if net total leverage is 4.5x and Libor plus 350 bps if net total leverage is above 4.5x, with a 0.75% Libor floor, in line with existing term loan pricing. Currently, the term loan is priced at Libor plus 325 bps.

Original issue discount talk on the add-on term loan is 99 to 99.5, the source said.

Commitments are due at 5 p.m. ET on Feb. 15, the source added.

Proceeds will be used to fund a dividend.

Les Schwab is a Bend, Ore.-based tire retail chain.

© 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.