Keeley downsizes term loan to $150 million, upsizes mezzanine financing

By Sara Rosenberg

New York, July 9 - Keeley Holdings Inc. reduced the size of its term loan to $150 million from $175 million and increased the amount of mezzanine debt that TA Associates will hold to $60 million from $35 million, according to a market source.

Pricing on the amortizing term loan was left unchanged at Libor plus 475 basis points with a 3% Libor floor and an original issue discount of 98, the source said.

Keeley's now $160 million five-year credit facility, down from $185 million, still includes a $10 million revolver that is also priced at Libor plus 475 bps with a 3% Libor floor and an original issue discount of 98.

Bank of Montreal and CIT are the lead banks on the deal, with Bank of Montreal the left lead.

Proceeds will be used to help fund TA Associates' purchase of a minority interest in the company.

With the changes, senior leverage is now at 1.9 times, down from 2.3 times, while total leverage remained at 2.8 times.

Recommitments are due from lenders on Friday.

Keeley is a Chicago-based investment manager that has about $9 billion in asset under management.

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