Harbor Freight talks $1 billion term loan at Libor plus 400 bps

By Sara Rosenberg

New York, April 25 - Harbor Freight Tools USA Inc. launched its $1 billion seven-year first-lien term loan on Wednesday with price talk of Libor plus 400 basis points with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year.

The company's $1.4 billion credit facility also includes a $400 million ABL revolver.

Commitments are due on May 4, the source said.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are leading the term loan, and Wells Fargo is leading the revolver.

Proceeds will be used to refinance existing debt and pay a dividend.

Total leverage is 3.7 times.

Harbor Freight is a Camarillo, Calif.-based provider of tools and equipment.

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