HD Supply flexes $850 million term loan to Libor plus 275 bps

By Sara Rosenberg

New York, Aug. 6 – HD Supply Inc. lowered pricing on its $850 million senior secured six-year covenant-light term loan B (B1/BB-) to Libor plus 275 basis points from Libor plus 300 bps, according to a market source.

As before, the term loan has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Bank of America Merrill Lynch, Barclays, Goldman Sachs Bank USA, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the lead banks on the deal.

Commitments were due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used with cash on hand and borrowings under the company’s existing revolving credit facility to refinance an existing senior secured term loan.

The company expects the new term loan to allow for the pay down of certain debt, including using expected proceeds of the recently announced sale of its Power Solutions business unit to redeem all of its outstanding 11% senior secured second-priority notes due 2020.

HD Supply is an Atlanta-based industrial distributor.

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