On Friday we reported that Chicago buyout firm Willis Stein & Partners would take a second dividend on Roundy’s, its Midwestern supermarket chain. Today we’ve learned more details.
Willis Stein has used the dividend to take excess capital off Roundy’s balance sheet while pushing back debt maturities from 2010 to 2012. Willis Stein will take a dividend on the company worth $75 million. That does not change the company’s leverage rate of 3.1x debt-to-Ebitda. Roundy’s has $728.5 million in debt and $235 million in Ebitda, a source familiar with the deal said.
J.P. Morgan has served as lead arranger on the deal, with participation from Credit Suisse, Bank of America and Rabobank.
That $75 million dividend contributes to the $270 million Willis Stein has already earned on the company in an initial dividend. In 2006 the company earned 120% of its $225 equity million investment. Willis Stein had solicited bids for the company in the $2 billion range prior to the onset of the credit crunch.