Lifetime Brands shops $275 million term loan B at Libor plus 400 bps

By Sara Rosenberg

New York, Jan. 31 – Lifetime Brands Inc. is in market with its $275 million seven-year senior secured term loan B and is talking the debt at Libor plus 400 basis points with a 1% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

J.P. Morgan and Golub Capital are the leads on the term loan B.

Commitments are due on Feb. 12, the source added.

The company’s $425 million of credit facilities also include a $150 million asset-based revolver led by JPMorgan.

Proceeds will be used to help fund the acquisition of Filament Brands 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 this year, 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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