Keystone sets Friday launch for $325 million credit facility

By Sara Rosenberg

New York, Dec. 5 - Keystone Automotive Operations Inc. has scheduled a bank meeting for Friday to launch its proposed $325 million credit facility, according to a market source.

Bank of America is the lead bank on the deal.

The facility consists of a $125 million five-year asset-based revolver and a $200 million five-year term loan B.

Proceeds will be used to refinance the company's existing credit facility. The purpose of the refinancing is to provide Keystone with greater operational flexibility and liquidity to meet its growth and operational goals.

Pricing on the proposed asset-based revolver is anticipated to be lower than pricing on the company's existing revolver, while pricing on the proposed term loan B is expected to be higher than pricing on the company's existing term loan B.

The revolver is expected to have a springing financial covenant based on availability.

The term loan B is expected have no maintenance financial covenants.

Closing is anticipated to take place in January.

Keystone is a Pomona, Calif., distributor and marketer of specialty automotive accessories.

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