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Burlington eyes March 16 launch for $1.575 billion credit facility
By Sara Rosenberg
New York, Feb. 28 - Burlington Coat Factory Warehouse Corp. is looking at March 16 as the possible date to hold a bank meeting for the launch of its proposed $1.575 billion senior secured credit facility, according to a market source.
However, timing is still fluid at this point, the source added.
Bear Stearns and Bank of America are the joint lead arrangers and joint bookrunners on the deal.
The facility consists of an $800 million revolver and a $775 million term loan.
Borrowings under the revolver are limited by a borrowing base, which is calculated periodically based on specified percentages of the value of eligible inventory and eligible credit card receivables, subject to certain reserves and other adjustments.
Security for the revolver is a perfected first-priority lien on all inventory and accounts of the company and its subsidiaries and a perfected second-priority lien on substantially all other real and personal property.
Security for the term loan is a perfected first-priority lien on substantially all real and personal property and a perfected second-priority lien on all inventory and accounts.
Proceeds will be used to help fund Bain Capital Partners LLC's leveraged buyout of the Burlington, N.J., retailer of branded apparel for $45.50 per share in cash, or $2.06 billion.
In addition to the facility, Burlington also plans to issue $500 million in bonds -split into a $200 million senior unsecured notes offering and a $300 million senior subordinated notes offering - and up to $500 million in equity.
If the notes are not issued, the company intends to put in place a $200 million senior bridge facility and a $300 million subordinated bridge facility.
Up to $100 million of the term loan can be transferred to the notes and/or bridge facilities prior to closing.
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