Pricing on the $285 million term loan for J. Crew flexed down from LIBOR plus 2 1/2% to LIBOR plus 2 1/4% last Tuesday, a day before commitments were due. The deal is expected to close today. A pricing grid was also added, with rates dropping to LIBOR plus 2% on B1/B+ ratings, and down to LIBOR plus 1 3/4% for ratings higher than that. The ratings increase is expected to happen when the company completes an initial public offering, expected sometime this year. Moody's Investors Service rated the loan B2 and assigned a corresponding corporate family rating. Texas Pacific Group is the company's sponsor.
Goldman Sachs and Bear Stearns lead the credit, with Wachovia Securities also involved. The deal came to market at the end of April, after it was initially delayed in the fall. The facility had been contingent on its IPO the first go around, but it is not this time (CIN, 5/1). A spokesman for TPG declined comment, as did James Scully, cfo.