Compass Diversified upsizes term loan to $325 million, lowers spread

By Sara Rosenberg

New York, June 2 - Compass Diversified Holdings LLC increased its seven-year term loan B to $325 million from $280 million and trimmed pricing to Libor plus 325 basis points from Libor plus 350 bps, according to a market source.

In addition, the maximum leverage covenant is now 3.5 times with a permitted step-up to 4.25 times, revised from 4 times, for the first three fiscal quarters following a permitted eligible acquisition, the source said.

The term loan still has a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for one year.

Recommitments were due by 5 p.m. ET on Monday.

Allocations are expected on Wednesday, the source added.

Bank of America Merrill Lynch and SunTrust Robinson Humphrey Inc. are the lead banks on the deal.

Proceeds will be used to refinance existing bank debt.

Compass Diversified is a Westport, Conn.-based owner and manager of middle-market businesses.

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