The reversal comes after Credit Suisse and KeyBanc Capital Markets filled out the loan financing at revised terms.
As noted earlier, the term loan was downsized to $200 million, from $240 million, and pricing has been increased to L+600, with a 1.25% LIBOR floor and a 99 offer price, with 102, 101 call premiums. By contrast, the six-year term loan was launched at L+550, with a 1.25% LIBOR floor and a 99 offer price, with a 101, one-year soft call premium.
Proceeds were earmarked to refinance existing debt and fund a now roughly $114 million dividend, leveraging the issuer at roughly 3.8x against $53 million of adjusted EBITDA, sources said. The original deal called for a $154 million dividend, leveraging the issuer at 4.4x.
The issuer, an operator of bagel-bakery cafes, announced the dividend initiative as it continued to explore a possible business combination or sale of the company. – Chris Donnelly