Thu 04/20/2023 17:52 PM
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Cole Haan is exploring refinancing options of its outstanding debt, which includes a $250 million term loan and $75 million first lien secured notes, according to sources. Goldman Sachs hosted investor meetings with management last week, but lead arrangers have yet to be mandated.

The process is at an early stage, and terms and structure have yet to be finalized, sources said. However, investors say pricing could start at around SOFR+675 bps, 97 OID for the transaction. Leverage for the deal is about 4.5x based on LTM EBITDA of about $80 million.

The company refinanced its revolver last December, upsizing the line of credit by $5 million to $130 million while extending the maturity date of February 2024 to the earlier of Dec. 19, 2027, and 60 days before the the maturity date of the anticipated refinanced term loan, as reported.

The $290 million term loan due Feb. 12, 2025, was quoted today at 96/97, up from 92.5/94.5 at the beginning of this year, according to Solve Advisors. The ABL had $23 million outstanding as of Nov. 26, 2022, the end of the second quarter of fiscal 2023.

The company did not respond to an email request for comment.

--Adelene Lee
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