BNP Paribas and Credit Suisse First Boston will launch a bank deal backing a dividend recapitalization for Brentwood Associates portfolio company Oriental Trading Co. in the coming weeks. A banker said there will be a $25 million increase to the existing first-lien loan and a new $75 million second-lien loan added to fund the dividend. "The company is beating [its] numbers and there is the opportunity to do this," a banker said.
Oriental Trading already has a seven-year $2 million "B" loan, put in place during a recapitalization in the summer (LMW, 7/13). There is likely to be some increase to the current first-lien pricing of LIBOR plus 2 3 / 4 %, one banker added, but there are no specifics at this stage. Officials at Brentwood did not return calls and bankers at the two leads declined comment.