Container Store firms $362 million term loan B at Libor plus 425 bps

By Sara Rosenberg

New York, March 19 - The Container Store Inc. finalized the spread on its roughly $362 million term loan B (B3) due 2019 at Libor plus 425 basis points, the tight end of the Libor plus 425 bps to 450 bps talk, according to a market source.

Also, a step-down to Libor plus 375 bps was added if the corporate credit rating is upgraded to B2/B, the source said. Currently the rating is B3/B-.

As before, the loan has a 1.25% Libor floor, an original issue discount talk of 99¾ and 101 soft call protection for six months.

Recommitments are due at noon ET on Wednesday, the source added.

J.P. Morgan Securities LLC, Barclays, Morgan Stanley Senior Funding Inc. and Wells Fargo Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance a roughly $272 million term loan B and to redeem a portion of the company's outstanding cumulative preferred stock.

Container Store is a Coppell, Texas-based retailer of organization and storage products.

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