Wilton lifts spread on $400 million term loan to Libor plus 625 bps

By Sara Rosenberg

New York, Aug. 15 - Wilton Brands Inc. increased pricing on its $400 million term loan (B1/B) to Libor plus 625 basis points from Libor plus 550 bps, according to a market source.

Additionally, the original issue discount was revised to 98, versus earlier talk of 98 to 99, the source said.

The term loan still has a 1.25% Libor floor and 101 soft call protection for one year.

With the pricing changes, the maturity of the term loan was shortened to six years from seven years and amortization was added at 5% in years one, two and three; 10% in years four and five; and 65% in year six.

Furthermore, covenant levels were set at 4.5 times total OpCo leverage, subject to a $20 million cap on cash netting, with step downs. The ability to pay cash interest expense to HoldCo will terminate if total OpCo leverage is greater than 3.5 times, subject to the $20 million cap on cash netting.

Additionally, the accordion was set at $125 million, subject to 3.75 times total OpCo leverage, subject to the $20 million cash netting cap. Towerbrook and GTCR are unable to buy back debt.

The company's $525 million credit facility also includes a $125 million ABL revolver.

Deutsche Bank Securities Inc. and UBS Securities LLC are the lead banks on the deal.

Proceeds will be used to refinance existing debt.

Wilton is a Woodridge, Ill.-based craft and celebration company.

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