California Pizza's $290 million facility expected to launch in July

By Sara Rosenberg

New York, July 7 - California Pizza Kitchen Inc.'s proposed $290 million senior secured credit facility is expected to be launched to retail investors in the next two weeks or so, a market source told Prospect News.

GE Capital Markets and Jefferies & Co. are the lead joint lead arrangers and bookrunners on the deal, with GE the administrative agent.

Based on filings with the Securities and Exchange Commission, the facility is anticipated to consist of a $260 million six-year term loan and a $30 million five-year revolver, with both tranches priced at Libor plus 425 basis points with a 1.25% Libor floor.

The revolver is expected to have a 50 bps unused fee.

Amortization on the term loan is 1% per year, with the balance due at maturity.

There is a $75 million accordion feature.

Financial covenants include a minimum fixed-charge coverage ratio and a maximum rent adjusted leverage ratio.

Proceeds will be used to help fund the buyout of the company by Golden Gate Capital for $18.50 per share in cash, or about $470 million - the completion of which was announced on Thursday.

Other funds for the transaction are coming from $225 million of equity.

California Pizza is a Los Angeles-based casual dining chain featuring hearth-baked pizzas, pastas, salads, appetizers, soups, sandwiches and desserts.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.