Provo Craft to launch $170 million credit facility on Tuesday

By Sara Rosenberg

New York, Feb. 18 - Provo Craft is scheduled to hold a bank meeting on Tuesday to launch its proposed $170 million credit facility, according to a market source.

Bank of America is the lead bank on the deal.

The facility consists of a $50 million revolver and a $120 million term loan, the source said.

Price talk on the term loan is Libor plus 500 basis points with a 2% Libor floor and an original issue discount of 98, the source added.

Proceeds from the facility, along with $65 million of mezzanine debt, will be used to help fund the buyout of the company by BAML Capital Partners.

Senior leverage is around 2.3 times and total leverage is around 3.6 times.

Provo Craft is a Spanish Fork, Utah-based manufacturer and distributor of craft, hobby and education products.

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