Centerplate outlines tranching on proposed $175 million credit facility

By Sara Rosenberg

New York, Oct. 23 - Centerplate Inc. came out with details on the structure of its proposed $175 million senior credit facility that will be used to help fund its buyout by Kohlberg & Co. LLC, according to a PREM14A recently filed with the Securities and Exchange Commission.

The facility consists of a $90 million term loan, a $60 million revolver and a $25 million letter-of-credit facility.

National City Bank is the lead bank on the deal.

The commitment expires on Feb. 28, 2009 and is subject to there not being any adverse change or disruption in the financial, banking or capital market conditions that could reasonably be expected to have an adverse impact on the successful syndication of the proposed deal.

The buyout of Centerplate will be done through a debt tender for up to 70% of its notes and a merger in which 100% of its common stock will be acquired.

Each unitholder who tenders the notes underlying their units will receive $3.99 for each note tendered, subject to proration if more than 70% of the notes are tendered.

At the closing of the acquisition, each unitholder will also receive $0.01 per share for the common stock underlying the units for a total payment to income deposit securities holders of $4.00 per unit.

Other financing for the buyout will come from up to $125 million in equity.

The transaction is expected to be completed in the first quarter of 2009, subject to the approval of stock holders, receipt of valid tenders of 50.1% of the notes, receipt of consent note holders to amendments to the indenture governing the notes, receipt of third-party approvals and other customary conditions.

Centerplate is a Stamford, Conn., provider of food and related services including concessions, catering and merchandise services.

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