California Pizza ups term loan B to $370 million, flexes lower

By Sara Rosenberg

New York, March 22 - California Pizza Kitchen Inc. upsized its term loan B to $370 million from $320 million, according to a market source.

Also, pricing on the term loan B, as well as on a $30 million revolver, was lowered to Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 993/4, from talk of Libor plus 450 bps to 475 bps with a 1.25% Libor floor and an original issue discount of 991/2, the source said.

In addition, the tenor on the now $400 million credit facility, up from $350 million, was pushed out to five years, whereas before the revolver matured on July 7, 2016 and the term loan matured on July 7, 2017.

The term loan has 101 soft call protection for six months.

Recommitments are due at 5 p.m. ET on Monday, and closing is targeted for March 29, the source added.

GE Capital Markets and Jefferies Finance LLC are leading the deal.

Proceeds will be used to refinance existing first- and second-lien debt and, due to the term loan B upsizing, to pay a distribution to shareholders.

California Pizza Kitchen is a Playa Vista, Calif.-based casual dining chain and a distributor of frozen food products.

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