WESTBOROUGH, Mass. – BJ’s Wholesale Club Inc., the U.S. warehouse-store chain acquired last year by Leonard Green & Partners LP and CVC Capital Partners, reduced the interest rate on a $1.08 billion term loan the company is seeking to refinance debt, according to a person with knowledge of the transaction, Bloomberg News reported last week.

The financing, due in September 2018, will pay 4 percentage points more than the London interbank-offered rate, said the person, who declined to be identified because the terms are private. The minimum on the lending benchmark remains unchanged at 1.25 percent.

The interest rate will step down to 3.75 percentage points more than Libor when leverage, or debt to earnings before interest, taxes, depreciation and amortization is below three times, the person said.

Lenders are being offered one-year, soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to refinance the debt during the first year, the person said. The loan doesn’t have financial maintenance requirements.

Deutsche Bank AG arranged the transaction for BJ’s, according to data compiled by Bloomberg. The debt began trading last week at 100.56 cents on the dollar, according to information provider Markit Group Ltd. •