Crosby flexes second-lien loan to Libor plus 600 bps, updates OIDs

By Sara Rosenberg

New York, Nov. 7 - Crosby Worldwide Ltd. lowered pricing on its $90 million eight-year second-lien term loan (Caa1/CCC+) to Libor plus 600 basis points from revised talk of Libor plus 650 bps and initial talk of Libor plus 700 bps, according to a market source.

Also, the original issue discount on the second-lien loan was changed to 99 7/8 from revised talk of 99½ and initial talk of 99, and the discount on the company's $560 million seven-year first-lien term loan (B1/B) was tightened to 99 7/8 from modified talk of 99¾ and initial guidance of 991/2, the source said.

Furthermore, the first-lien term loan saw the addition of a step-down to Libor plus 275 bps at 4.5 times net leverage, the source continued.

Opening pricing on the first-lien term loan is still Libor plus 300 bps, after flexing there the other day from Libor plus 325 bps.

Both term loans still have a 1% Libor floor, the first-lien loan still has 101 soft call protection for six months, and the second-lien loan still has hard call protection of 102 in year one and 101 in year two.

Upon the first round of changes to the term loans, the first-lien tranche was upsized from $530 million and the second-lien trance was downsized from $120 million.

The company's $715 million senior secured credit facility also provides for a $65 million five-year revolver (B1/B).

Recommitments were due at 11 a.m. ET on Thursday, the source added.

Morgan Stanley Senior Funding Inc., UBS Securities LLC, KKR Capital Markets, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are the lead banks on the deal.

Proceeds will be used to fund the buyout of the Crosby Group and Acco Material Handling Solutions by KKR from Melrose Industries plc for about $1 billion.

Closing is expected this quarter, subject to customary regulatory approvals.

Crosby is a Tulsa, Okla.-based provider of highly engineered solutions for lifting and rigging applications across the oil and gas, construction, mining and industrial sectors. Acco is a York, Pa.-based provider of custom-built specialty material handling equipment, including a full line of hoists, industrial cranes, monorails, carts and trailers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.