Milano Syndicates $190m Leveraged Loan

Mexican retailer Milano has launched a $190m leveraged loan to refinance debt and pay for the acquisition of other retailers, including Melody, say bankers close to the process. The deal pushes the boundaries of the LatAm loans market in the current global volatility by being sponsor-backed, leveraged and denominated partly in local currency. The Advent-owned retailer is looking to raise as much of the transaction as it can in pesos. It will offer 275bp over TIIE or Libor out of the box for a $170m equivalent 7-year term loan. Pricing is on a leverage grid, which at 4x leverage pays 325bp over TIIE or Libor, and at below 2x, 100bp over. Out of the box, the leverage ratio is 3.0x-3.5x. Pricing on the $20m revolver is 150bp at the highest ratio and 75bp at the lowest. Citi is lead arranger and bookrunner. Late last week, ING signed on with a $35m ticket as a bookrunner, leaving room for one more bookrunner spot and three additional MLAs with $30m tickets each. Retail syndication will be launched this week at meetings in Mexico and New York.