Apex Tool cuts spread on $835 million term loan to Libor plus 350 bps

By Sara Rosenberg

New York, Jan. 22 - Apex Tool Group reduced pricing on its $835 million seven-year covenant-light term loan to Libor plus 350 basis points from talk of Libor plus 400 bps to 425 bps, according to a market source.

The 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left unchanged.

The company's $1.01 billion senior secured credit facility (B1/B) also includes a $175 million five-year revolver that also flexed to Libor plus 350 bps from talk of Libor plus 400 bps to 425 bps, the source said.

The revolver is offered with a 100 bps upfront fee.

Commitments are still due at 5 p.m. ET on Wednesday, after being accelerated last week from an original deadline of Friday.

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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