PrimeSource cuts spread on $1.1 billion term B to Libor plus 325 bps

By Sara Rosenberg

New York, Jan. 20 – PrimeSource (Park River Holdings Inc.) reduced pricing on its $1.095 billion seven-year covenant-lite first-lien term loan B (B2/B/B+) to Libor plus 325 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99.5 from 99, the source said.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets, Wells Fargo Securities LLC, Nomura, Golub and Antares Capital are the bookrunners on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Wednesday, the source added.

Proceeds will be used with $400 million of senior notes to back the buyout of PriSo Holding Corp. (PrimeSource) by Clearlake Capital Group LP from Platinum Equity, which was completed last month, and merger with TKE Holdings Inc. (Dimora Brands).

PrimeSource is an Irving, Tex.-based provider of construction fastening solutions and other complementary specialty building products. Dimora is a provider of specialty hardware and home accessories.

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