Credit Suisse First Boston is in the market with a $260 million refinancing deal for New York-based Duane Reade. The credit comprises a $100 million, three-year revolver and a $20.5 million, three-year "A" term loan, said a banker familiar with the credit. Pricing on the pro rata is 13/ 4% over LIBOR and there is a 3/8% commitment fee on the revolver. There is also a $139.5 million term loan "B" set to mature in 2007, priced at LIBOR plus 21/ 2%, he added. Officials at Duane Reade did not comment.
FleetBoston Financial is administration agent and Credit Lyonnais the documentation agent. Duane Reade operates about 170 stores in New York and New Jersey and is planning to open dozens more over the next two years, mostly outside Manhattan.