Harbor Freight Tools firms $3 billion term loan at Libor plus 325 bps

By Sara Rosenberg

New York, Oct. 14 – Harbor Freight Tools USA Inc. set pricing on its $3 billion seven-year covenant-lite first-lien term loan (Ba3/BB-) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, and added a 25 bps step-down at 2.75x total net leverage, according to a market source.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99, 101 soft call protection for six months and amortization of 1% per annum.

Credit Suisse Securities (USA) LLC is the lead arranger on the deal.

Commitments were scheduled to be due at noon ET on Wednesday, accelerated from 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to refinance existing debt and fund a dividend.

Harbor Freight is a Camarillo, Calif.-based retailer of tools and equipment.

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