JPMorgan and Lehman Brothers have launched syndication of an $850 million facility backing the $2.43 billion acquisition of Dunkin' Brands by a group of private equity firms including, Bain Capital Partners, The Carlyle Group and Thomas H. Lee Partners. The deal, which launched last Monday, comprises a six-year, $150 million revolving credit facility and a seven-year, $700 million term loan "B." Pricing on both tranches is LIBOR plus 2 3/4%.
The sale was agreed upon Dec. 12, four days after the close of an auction for the donut company and its assets. The group of private equity firms is acquiring the company from Paris-based beverage company, Pernod Ricard SA. Pernod Ricard was selling the donut chain in an attempt to reduce its debt. The company includes the largest donut chain in the U.S., Dunkin' Donuts, ice cream store chain, Baskin-Robbins and Togo's, a sandwich shop chain.
Commitments are due within the next few weeks, with the closing scheduled before the end of the month. A spokesman for Carlyle declined comment. Calls to Thomas H. Lee Partners and Bain Capital were not returned.