Inspire Brands cuts spread on $1.75 billion loan to SOFR plus 300 bps

By Sara Rosenberg

New York, Feb. 8 – Inspire Brands Inc. (IRB Holdings Corp.) lowered pricing on its $1.75 billion senior secured first-lien term loan (B2/B+) due Dec. 15, 2027 to SOFR+CSA plus 300 basis points from SOFR+CSA plus 325 bps, according to a market source.

Also, the original issue discount on the term loan was changed to about 99.03 from talk in the range of 98.5 to 99, and the debt was revised to be fungible with the company’s existing term loan priced at SOFR+CSA plus 300 bps with a 0.75% floor from non-fungible at launch, the source said.

Furthermore, the 101 soft call protection for six months will now apply to the new term loan and the existing term loan.

The new term loan still has a 0.75% floor, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and amortization of 1% per annum.

Barclays is the left bookrunner on the deal and the administrative agent.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, the source added.

Allocations are expected on Thursday.

Proceeds from the term loan will be used with anticipated variable funding note (VFN) proceeds to refinance an existing $2.488 billion term loan B-1 due February 2025.

Inspire Brands is an Atlanta-based multi-brand restaurant company.

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