Generation Brands to launch $270 million in term loans on Tuesday

By Sara Rosenberg

New York, Oct. 30 - Generation Brands will hold a bank meeting at noon ET on Tuesday to launch $270 million in term loans, according to a market source.

Wells Fargo Securities LLC is the lead bank on the deal.

The debt consists of a $160 million 41/2-year first-lien term loan B, a $70 million five-year second-lien term loan and a $40 million six-year holdco term loan, the source said.

All-in yield talk on the term loan B is 8%, including an original issue discount of 99, second-lien loan all-in talk is 12¼% including a discount of 98, and holdco loan all-in talk is 16¾% including 6% PIK and a discount of 97, the source continued.

The term loan B has 101 soft call protection for six months, the second-lien loan has call protection of 103 in year one, 102 in year two and 101 in year three, and the holdco loan has call protection of T+50 in year one, 108 in year two, 104 in year three and 102 in year four.

Proceeds will be used to refinance existing debt.

Generation Brands is a lighting company.

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