Compass Group launches $500 million term B at Libor plus 225-250 bps

By Sara Rosenberg

New York, April 2 – Compass Group Diversified Holdings LLC launched on its call on Monday a $500 million seven-year term loan B that is talked at Libor plus 225 basis points to 250 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Covenants include a secured net leverage ratio and a total net leverage ratio.

Expected term loan ratings are Ba3/BB.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., TD Securities (USA) LLC and U.S. Bank are the lead arrangers on the deal.

Commitments are due at noon ET on Thursday, the source added.

Proceeds will be used with $400 million of senior notes to refinance an existing $560 million term loan B and outstanding revolving credit facility borrowings.

Compass Group is a Westport, Conn.-based acquirer, owner and manager of a diverse group of subsidiaries operating within the industrial and branded consumer industries.

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