Credit Suisse First Boston launched syndication last week for a $310 million recapitalization for Buffets. The facility comprises a $30 million revolver, $240 million "B" loan, $20 million existing letter of credit facility and $30 million synthetic letter of credit facility. The "B" loan and synthetic L/C facility are priced at LIBOR plus 31/2%, while the revolver and existing L/C facility are priced at LIBOR plus 31/4%. There is also a commitment fee of 50 basis points on the revolver.
The amended credit facility and proceeds from a note offering will be used to refinance the existing term loan and make a distribution to stockholders. In addition, $50 million of proceeds will be used to repurchase Buffets' 111/4% senior subordinated notes due 2010 and redeem Buffets Holdings' series A senior subordinated and series B junior subordinated notes due 2011. The transaction is expected to close later this month. Private-equity firm Caxton-Iseman Capital owns 70% of the company. Calls to Michael Andrews, Buffets' cfo, were not returned.