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Bank of America Refinances JOANN’s Covenant-lite First Lien Term Loan

July 09, 2021, 07:00 AM
Filed Under: Retail

JOANN, the nation’s category leader in sewing and one of the fastest growing competitors in the arts and crafts category, successfully completed the refinancing of its existing covenant-lite first lien term loan facility due October 2023. Bank of America acted as administrative agent, collateral agent and lender according to the 8K filed with the SEC.

The impact of the new $675 million covenant-lite first lien 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 its 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,” stated Matt Susz, Chief Financial Officer of JOANN. “The new term loan received strong demand, and the terms also strengthen our ability to support ongoing investments in our growth strategies,” said Susz.

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