Apex Tool launches $835 million term loan at Libor plus 400-425 bps

By Sara Rosenberg

New York, Jan. 11 - Apex Tool Group launched on Friday its $835 million seven-year covenant-light term loan with price talk of Libor plus 400 basis points to 425 bps with a 1.25% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for one year, the source said.

The company's $1.01 billion senior secured credit facility also includes a $175 million five-year revolver.

Commitments are due on Jan. 25, the source added.

Barclays, Goldman Sachs & Co., Morgan Stanley Funding Inc., RBC Capital Markets LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc. are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Bain Capital from Cooper Industries and Danaher Corp.

Under the agreement, the Cooper and Danaher 50% joint venture is being purchased for about $1.6 billion.

Closing is expected in the first half of this year, subject to customary conditions, including regulatory approvals.

Senior secured leverage is 3.6 times and net total leverage is 5.4 times, the source added.

Apex Tool is a Sparks, Md.-based tool manufacturer.

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