New Era Cap wraps $300 million term loan at Libor plus 600 bps

By Sara Rosenberg

New York, Dec. 16 – New Era Cap LLC priced a $300 million 5.5-year covenant-lite first-lien term loan (B2/BB-) at Libor plus 600 basis points with a 0.75% Libor floor and an original issue discount of 98, according to a market source.

After June 30, 2022, pricing on the term loan can step down by 25 bps or step up by 25 bps based on leverage, the source said.

The term loan has hard call protection of 102 in year one and 100.5 in year two.

Jefferies LLC and Truist are the arrangers on the deal.

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

New Era Cap is a Buffalo, N.Y.-based headwear company.

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