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Harbor Freight cuts $494 million term pricing to Libor plus 325 bps
By Sara Rosenberg
New York, Feb. 17 - Harbor Freight Tools lowered pricing on its $494 million term loan due in 2016 to Libor plus 325 basis points from Libor plus 350 bps, and added a step down to Libor plus 300 bps when leverage is 1.5 times or lower, according to a fund manager.
Also, the Libor floor under the term loan was reduced to 1.75% from 2%, the fund manager said.
The original issue discount of 99¼ was left unchanged.
Recommitments are due from lenders on Thursday.
Credit Suisse is the lead bank on the $534 million credit facility, which also includes a $40 million revolver due in 2015.
Financial covenants include a leverage ratio, an interest coverage ratio 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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