Tony’s+Cardenas to launch $510 million credit facilities on Tuesday

By Sara Rosenberg

New York, July 11 – Tony’s Fresh Market+Cardenas Markets (Cardenas Merger Sub LLC) is scheduled to hold a lender call at 2 p.m. ET on Tuesday to launch $510 million of credit facilities, according to a market source.

Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC, Rabobank and Natixis are the lead arrangers on the deal.

The facilities consist of a $75 million revolver and a $435 million seven-year first-lien term loan, the source said.

Price talk on the term loan is SOFR+10 basis points CSA plus 700 bps with a 0.75% floor and an original issue discount of 92, the source continued.

The term loan has 101 hard call protection for one year.

Commitments are due at 5 p.m. ET on July 20, the source added.

Proceeds will be used to help fund the acquisition of Cardenas Markets by Apollo from KKR and merger of Cardenas with Tony’s Fresh Market, a current Apollo portfolio company.

Closing is expected this quarter, subject to customary conditions.

Cardenas is an Ontario, Calif.-based grocery retailer focused on serving the Hispanic community. Tony’s is a Chicago-based grocery chain.

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