Airxcel reveals first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, April 10 – Airxcel Inc. (AirX Holdings Inc.) released price talk on its $360 million seven-year senior secured first-lien term loan and $120 million eight-year senior secured second-lien term loan in connection with its bank meeting on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 400 basis points with a 0% Libor floor and an original issue discount of 99.5, and the second-lien term loan is talked at Libor plus 800 bps with a 0% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $540 million of credit facilities also provide for a $60 million five-year ABL revolver.

Jefferies LLC and Morgan Stanley are the bookrunners on the deal, with Jefferies left on the first-lien and Morgan Stanley left on the second-lien.

Commitments are due on April 24, the source added.

Proceeds will be used to help fund the buyout of the company by L Catterton from One Rock Capital Partners LLC.

Airxcel is a Wichita, Kan.-based producer and distributor of heating, ventilating, air conditioning, appliance and a variety of composite and soft good products serving specialty markets.

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