Portillo’s reveals first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, July 23 – Portillo’s Holdings LLC released price talk on its $315 million seven-year first-lien term loan (B-) and its $100 million eight-year second-lien term loan (CCC) with its call on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99½, and the second-lien term loan is talked at Libor plus 725 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The $445 million credit facility also includes a $30 million revolver (B-).

Commitments are due on Aug. 1, the source added.

UBS AG and Jefferies Finance LLC are the leads on the deal.

Proceeds will be used to help fund the buyout of the company by Berkshire Partners.

Other funds for the transaction will come from $100 million of holdco preferred equity owned solely by Goldman Sachs and $370 million of common equity.

Initially, the second-lien term loan was expected to be sized at $140 million, but due to the significant common equity provided by Berkshire, the loan was downsized.

Opco leverage is 4.6 times through the first lien and 6 times through the second lien.

Portillo’s is a Chicago-based restaurant chain.

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