The financing package to back the leveraged buyout of sandwich chain Quiznos by JPMorgan Partners came to market last week. The $925 million deal was expected to be received well by investors because it is fresh paper among the refinancings and repricings that have been filling the market recently. It is also considered a strong brand name, by some investors.
Goldman Sachs is on the left for the $75 million revolver and $600 million term loan, which is being talked at LIBOR plus 2 1/2%, and Deutsche Bank is on the left for a $250 million second lien which is being talked at LIBOR plus 6%. There is 102, 101 call protection on the second lien.
JPMorgan Partners, which owns Pinnacle Foods Corp. and made a bid for Dunkin' Brands, approached Quiznos to do the growth equity investment. The purchase price has not been disclosed and a JPMorgan Partners' spokeswoman declined comment.
JPMorgan Partners chose Goldman and Deutsche Bank because of past relationships and because they offered the best terms. Goldman Sachs was Quiznos' financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison provided legal counsel. O'Melveny & Meyers provided legal counsel to JPMorgan Partners. Calls to officials and a spokeswoman at Quiznos were not returned.