Express $325 million credit facility structure emerges with launch

By Sara Rosenberg

New York, June 6 - Express released details on the structure of its proposed $325 million credit facility as the deal was launched with a bank meeting on Wednesday, according to a market source.

Morgan Stanley is the lead bank on the deal.

The facility consists of a $200 million ABL revolver talked at Libor plus 125 basis points and a $125 million term loan, the source said.

Proceeds will be used to help fund Golden Gate Capital's acquisition of a 67% ownership interest in the company from Limited Brands, Inc. for cash proceeds of $548 million.

Golden Gate will contribute $431 million in equity for the deal and Limited is going to roll over $216 million in equity.

Total debt is 1.6 times and rent-adjusted total debt is 5.8 times.

The transaction is expected to close no later than July 6 and is subject to customary conditions.

Express is a Columbus, Ohio, fashion brand with 631 store locations. Net sales for 2006 were $1.7 billion.

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