Harbor Freight launches $60 million add-on; pricing step up expected

By Sara Rosenberg

New York, May 9 - Harbor Freight Tools held a conference call on Monday to launch a proposed $60 million add-on to its term loan B to existing lenders, according to a market source. Credit Suisse First Boston is the lead bank on the deal.

The add-on is priced at Libor plus 250 basis points.

Furthermore, under the terms of the existing credit agreement, pricing on the existing originally sized $440 million term loan B will be stepping up to Libor plus 250 basis points from Libor plus 225 basis points because leverage is going up with the obtainment of the add-on, the source explained.

Proceeds from the term loan add-on will be used to pay a dividend.

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

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