Parts Authority talks $600 million term loan at Libor plus 425 bps

By Sara Rosenberg

New York, Oct. 14 – Parts Authority (PAI Holdco Inc.) launched on Wednesday its $600 million seven-year senior secured first-lien term loan with price talk of Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 98.5 to 99, according to a market source.

The first-lien term loan has 101 soft call protection for six months, the source said.

Commitments are due at 3 p.m. ET on Oct. 23.

The company’s $925 million of credit facilities also include a $125 million five-year ABL revolver and a $200 million privately placed eight-year senior secured second-lien term loan.

Jefferies LLC and Golub are the lead arrangers on the debt.

Proceeds will be used to help fund the buyout of the company by Kohlberg & Co. LLC from The Jordan Co.

Parts Authority is a Lake Success, N.Y.-based automotive aftermarket replacement parts distribution platform serving the do-it-for-me and do-it-yourself e-commerce segments of the automotive aftermarket.

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