JOANN, an arts, crafts and fabric retailer, refinanced its existing covenant-lite first lien term loan facility due October 2023, replacing it with a new $675 million covenant-lite first lien term loan. According to an 8K filed with the SEC, Bank of America is serving as administrative agent, collateral agent and lender for the facility.
The impact of the new term loan facility is leverage-neutral for JOANN, as net proceeds will be used to fully repay existing borrowings under the prior first lien term loan facility, with the balance reducing the amount borrowed on the company’s existing asset-based revolving credit facility. The new first lien term loan facility matures on July 7, 2028, and lowers the applicable rate by 25 basis points to LIBOR plus 4.75%. The revised pricing terms also reduce the LIBOR floor by 25 basis points to 0.75%.
“Our refinancing strategy extends our debt maturities and lowers our overall borrowing costs,” Matt Susz, CFO of JOANN, said. “The new term loan received strong demand, and the terms also strengthen our ability to support ongoing investments in our growth strategies.”
