Quiznos' $225 million second-lien term loan broke at 102 in the secondary market last week, much higher than the 100 1/2 level hit by its $650 million first lien. The second lien's popularity was bolstered by its call protection of 102, 101.The deal backs the leveraged buyout of the sandwich chain by JPMorgan Partners.
Deutsche Bank is on the left for the second lien, while Goldman Sachs is on the left for the first lien. The banks gave Quiznos a cut of 25 basis points off both tranches before the deal broke for trading. The first lien is priced at LIBOR plus 2 1/4%, while the second lien is priced at LIBOR plus 5 3/4%. The deal also consists of a $75 million revolver. A call to a spokeswoman for Quiznos was not returned.