Lead arrangers Bear Stearns and CIBC World Markets decided last week to increase the bonds and reduce the bank debt on the debt package backing the buyout of Roundy's by Willis Stein & Partners. Bankers said after pricing the original $200 million bond deal last week at 8 7/8%--the low end of the 8 7/8%-9% price spectrum--bankers decided to upsize the bond deal to $225 million and reduce the original term loan "B" part of the bank debt to $225 million from $250 million.
A three times oversubscription on the "B" loan by investors has also resulted in a 50 basis points reduction in price on the tranche which is now priced at LIBOR plus 2 3/4%. Randy Benz, controller at Roundy's, declined to comment.