California Pizza sets first-, second-lien term loan talk with launch

By Sara Rosenberg

New York, Aug. 2 – California Pizza Kitchen Inc. released price talk on its $290 million six-year first-lien term loan (B2) and a $75 million seven-year second-lien term loan (Caa2) in connection with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 600 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 1,000 bps with a 1% Libor floor and a discount of 97, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The debt has a total rent adjusted net leverage covenant.

The company’s $395 million credit facility also provides for a $30 million revolver (B2).

Jefferies Finance LLC, Antares Capital, Guggenheim, BMO Capital Markets and Rabobank are the arrangers on the deal.

Commitments are due on Aug. 16, the source added.

Proceeds will be used to refinance existing debt.

California Pizza Kitchen is a casual dining chain and a distributor of frozen food products.

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