PlayPower finalizes pricing on first- and second-lien term loans

By Sara Rosenberg

New York, June 23 – PlayPower Inc. firmed pricing on its $150 million first-lien term loan (B2/B) at Libor plus 475 basis points, the low end of the Libor plus 475 bps to 500 bps talk, according to a market source.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Pricing on the $44 million second-lien term loan (Caa2/CCC+) finalized at Libor plus 875 bps, the wide end of the Libor plus 850 bps to 875 bps talk, the source said.

As before, the second-lien term loan has a 1% Libor floor, a discount of 98.5 and hard call protection of 102 in year one and 101 in year two.

Covenants include a maximum total leverage ratio.

The company’s $224 million credit facility also provides for a $30 million revolver (B2/B).

Societe Generale is the lead arranger on the deal. Ally Corporate Finance signed on as syndication agent and Audax Senior Debt signed on documentation agent, the source added.

Proceeds were used to help fund the buyout of the company by Littlejohn & Co. LLC from Apollo Investment Corp.

Senior leverage is 3.9 times, and total leverage is 5 times.

PlayPower is a Huntersville, N.C.-based designer, manufacturer and distributor of commercial playgrounds as well as indoor and outdoor recreational equipment.

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