Jo-Ann trims term loan B to $725 million, flexes to Libor plus 500 bps

By Sara Rosenberg

New York, Sept. 29 – Jo-Ann Stores Inc. downsized its seven-year covenant-light term loan B to $725 million from $850 million and increased pricing to Libor plus 500 basis points from Libor plus 450 bps, according to a market source.

In addition, the original issue discount on the term loan B was modified to 98 from talk of 99 to 99.5, the 101 soft call protection was extended to one year from six months and the MFN sunset was eliminated, the source said.

The term loan B still has a 1% Libor floor.

Bank of America Merrill Lynch is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

Jo-Ann Stores is a Hudson, Ohio-based specialty retailer of fabrics and crafts.

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