Apex Tool launches $874 million term loan B at Libor plus 550 bps

By Sara Rosenberg

New York, Aug. 5 – Apex Tool Group LLC launched on Monday its $874 million term loan B due August 2024 with price talk of Libor plus 550 basis points with two 25 bps step-downs at trailing gross secured leverage ratio of less than 4.5x and less than 4.0x and a 1.25% Libor floor, according to a market source.

The term loan has 101 soft call protection for six months and a springing maturity to 91 days prior to the final maturity of the existing senior notes due February 15, 2023 if more than $100 million of the notes remain outstanding, the source said.

The company’s $1,049,000,000 of senior secured credit facilities also include a $175 million revolver due April 2024.

Barclays is the lead arranger on the deal.

Commitments are due at noon ET on Aug. 16, the source continued.

Proceeds will be used to amend and extend by 2.5 years an existing revolver and term loan B. Current term loan B pricing is Libor plus 375 bps with a 1.25% Libor floor.

As part of the extension, there will be certain lender-friendly covenant modifications, the source added.

Lender are being offered a 50 bps fee.

Bain Capital is the sponsor.

Apex Tool is a Sparks, Md.-based manufacturer and supplier of hand and power tools for industrial, commercial and demanding do-it-yourself applications.

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