California Pizza's buyout deal includes $75 million second-lien loan

By Sara Rosenberg

New York, July 13 - California Pizza Kitchen Inc.'s senior secured credit facility includes a $75 million seven-year second-lien term loan priced at Libor plus 825 basis points with a 1.25% Libor floor, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Wilmington Trust is the administrative agent on the second-lien loan.

As was previously reported, the company also got a $30 million five-year revolver priced at Libor plus 425 bps and a $260 million first-lien term loan priced at Libor plus 425 bps with a 1.25% Libor floor.

Amortization on the first-lien term loan is 0.25% quarterly for the first 5¾ years, with the balance due at maturity. There is no amortization on the second-lien term loan.

Covenants include a minimum consolidated fixed-charge coverage ratio and a maximum consolidated rent-adjusted leverage ratio.

GE Capital Markets and Jefferies & Co. are the lead joint lead arrangers and bookrunners on the first-lien deal, with GE the administrative agent.

The first-lien credit facility is expected to launch to retail investors sometime this month.

However, closing on the credit facility took place on July 7 when the buyout of the company by Golden Gate Capital for $18.50 per share in cash, or about $470 million, was completed.

California Pizza is a Los Angeles-based casual dining chain featuring hearth-baked pizzas, pastas, salads, appetizers, soups, sandwiches and desserts.

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