Harbor Freight launches $534 million credit facility via Credit Suisse

By Sara Rosenberg

New York, Feb 4 - Harbor Freight Tools held a conference call at 3 p.m. ET to launch a $534 million credit facility, according to a market source.

Credit Suisse is the lead bank on the deal.

The facility consists of a $40 million revolver due in 2015 and a $494 million term loan due in 2016, the source said.

Price talk on the revolver is Libor plus 325 basis points with a 2% Libor floor, and price talk on the term loan is Libor plus 350 bps with a 2% Libor floor and an original issue discount of 991/4, the source added.

The term loan amortization is 1% per year and the tranche does include financial covenants, such as leverage and interest coverage ratios, and capital expenditures limitations.

Proceeds will be used to refinance existing debt.

Harbor Freight Tools is a Camarillo, Calif.-based tool and equipment catalog retailer.

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