Wrench Group talks first-lien term loan debt at Libor plus 425-450 bps

By Sara Rosenberg

New York, April 2 – Wrench Group LLC launched on Tuesday its $225 million seven-year first-lien term loan and $75 million delayed-draw first-lien term loan with price talk of Libor plus 425 basis points to 450 bps with two 25 bps leverage based step-downs, a 0% Libor floor and an original issue discount of 99, according to a market source.

The delayed-draw term loan has a 24-month availability and a ticking fee of half the spread for days 46 to 90 and the full spread thereafter, the source said.

The funded first-lien term loan and the delayed-draw term loan are being sold as a strip.

Included in the first-lien term loan is 101 soft call protection for six months.

Commitments are due at 1 p.m. ET on April 12, the source added.

The company’s $420 million of credit facilities also provide for a $45 million revolver and a $75 million privately placed eight-year second-lien term loan.

Jefferies LLC, Macquarie Capital (USA) Inc. and Antares Capital are the lead arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by Leonard Green & Partners from Investcorp.

Wrench Group is a provider of home maintenance and repair services specializing in heating, ventilation and air conditioning, plumbing and electrical services.

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