Lifetime Brands eyes $425 million credit facilities for Filament buy

By Sara Rosenberg

New York, Dec. 22 – Lifetime Brands Inc. has received a commitment for $425 million of credit facilities to help fund its acquisition of Filament Brands, company officials said in a call on Friday.

The facilities consist of a $150 million asset-based loan and a $275 million seven-year senior secured term loan B.

Officials remarked that expected pricing on the asset-based loan is around Libor plus 150 basis points and expected pricing on the term loan B is in the Libor plus 400 bps to 450 bps range.

The term loan is expected to have typical term loan B provisions and soft call protection, officials added in the call.

Under the agreement, Filament Brands is being bought from Centre Partners in a cash and stock transaction valued at about $313 million. Lifetime will issue to Filament’s equity holders at closing newly issued shares representing 27% of Lifetime Brands common stock on a fully diluted basis after accounting for the issuance of additional shares.

Pro forma for the transaction, net sales are expected at about $770 million and pro forma EBITDA is expected at more than $85 million.

Net debt to EBITDA will be less than 4 times after synergies. The company anticipates reaching its target net debt to EBITDA ratio of below 3 times within two years of close as a result of significant free cash flow generation.

Closing is expected in the first half of 2018, subject to the expiration or termination of the applicable waiting periods under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, Lifetime shareholder approval and other customary conditions.

Lifetime Brands is a Garden City, N.Y.-based provider of branded kitchenware, tableware and other products used in the home. Filament Brands is a Seattle-based housewares company.

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