J. Crew launches $1 billion term loan at Libor plus 375 bps, OID 99½

By Sara Rosenberg

New York, Jan. 26 - J. Crew Group Inc. launched its $1 billion seven-year term loan on Wednesday with price talk of Libor plus 375 basis points with a 1.5% Libor floor and an original issue discount of 991/2, according to sources.

The company's $1.25 billion senior secured credit facility also includes a $250 million five-year asset-based revolver, which, according to the filings with the Securities and Exchange Commission, is expected to be priced at Libor plus 250 bps.

Bank of America and Goldman Sachs are the joint lead arrangers and joint bookrunners on the deal.

Proceeds, along with $600 million of senior unsecured notes and roughly $1.1 billion of equity, will be used to fund the buyout of the company by TPG Capital and Leonard Green & Partners LP for $43.50 per share in cash, or a total of about $3 billion.

A special shareholders' meeting to vote on the acquisition is scheduled for March 1. The company has already been granted early termination of the waiting period under Hart-Scott-Rodino.

J. Crew Group is a New York-based retailer of women's, men's and children's apparel, shoes and accessories.

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