Hillman Group cuts spread on term loans to Libor plus 275 bps

By Sara Rosenberg

New York, Feb. 23 – Hillman Group Inc. reduced pricing on its $835 million seven-year first-lien term loan B-1 (B1/B+/BB), $150 million seven-year first-lien term loan B-2 (B1/B+/BB) and $200 million first-lien delayed-draw term loan (B1/B+/BB) with availability for 24 months to Libor plus 275 basis points from talk in the range of Libor plus 300 bps to 325 bps, according to a market source.

In addition, the original issue discount on the term loans was changed to 99.75 from 99.5, the source said.

The term loans still have one 25 bps step-down at 0.5x deleveraging, a 0.5% Libor floor, 101 soft call protection for six months and ticking fees paid from the time of allocations of half the margin for days 46 to 90 and the full margin thereafter.

Delayed-draw term loan ticking fees paid from closing remained at half the margin from days 61 to 120 and the full margin thereafter.

The company’s $1.435 billion of credit facilities also include a $250 million five-year ABL revolver.

Jefferies LLC and Barclays are the lead arrangers on the deal.

Recommitments are due at noon ET on Wednesday, the source added.

The credit facilities are being done in conjunction with the company’s merger with Landcadia Holdings III Inc., a publicly traded special purpose acquisition company.

The transaction implies an enterprise valuation for Hillman of $2.642 billion.

Closing is expected in the second quarter, subject to approval of the stockholders of Landcadia III and of Hillman and other customary conditions.

Hillman is a Cincinnati-based distributor of hardware and home improvement products, personal protective equipment and robotic kiosk technologies.

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