Eddie Bauer to launch $300 million term loan Tuesday

By Sara Rosenberg

New York, May 23 - Eddie Bauer Holdings, Inc. is scheduled to hold a bank meeting Tuesday to launch its proposed $300 million six-year term loan, according to market sources.

JPMorgan and GE Capital are joint lead arrangers and joint bookrunners on the deal, with JPMorgan the left lead. GE is also acting as syndication agent and Credit Suisse First Boston as documentation agent.

The term loan will be launched with an opening price of Libor plus 250 basis points, sources said.

Proceeds will be used to support Spiegel, Inc.'s plan of reorganization upon exiting from Chapter 11 bankruptcy protection. Following emergence, Spiegel will establish Eddie Bauer as the new parent company.

Eddie Bauer has already obtained a $150 million working capital asset-based revolving credit facility as part of its exit financing package. This revolver, provided by existing debtor-in-possession lenders, is already a done deal, sources said. Essentially, the company's DIP is being converted into the new revolver.

Eddie Bauer is a Redmond, Wash., provider of casual wear clothing, accessories and home furnishings.

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