Apex Tool trims spread on $1.01 billion facility to Libor plus 325 bps

By Sara Rosenberg

New York, Jan. 23 - Apex Tool Group reduced pricing on its $1.01 billion senior secured credit facility (B1/B) to Libor plus 325 basis points from revised talk of Libor plus 350 bps and initial talk of Libor plus 400 bps to 425 bps, according to a market source.

The facility consists of an $835 million seven-year covenant-light term loan and a $175 million five-year revolver.

Additionally, the original issue discount on the term loan was tightened to 99½ from 99, while the 1.25% Libor floor and 101 soft call protection for one year were left unchanged, the source said.

The revolver is still offered with a 100 bps upfront fee.

Recommitments are due at 2 p.m. ET on Thursday and allocations are expected at the end of this week, the source added.

Barclays Capital Inc., 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 Bain Capital's buyout of the company 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.

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

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