Otter Products cuts term B to $500 million, adds $125 million term A

By Sara Rosenberg

New York, May 27 - Otter Products LLC downsized its six-year term loan B to $500 million from $625 million and added a $125 million five-year term loan A to its capital structure, according to a market source.

Price talk on the term loan A is Libor plus 375 basis points with no Libor floor and an original issue discount of 991/2, the source said.

The term loan B is still talked at Libor plus 450 bps to 475 bps with a 1% Libor floor and an original issue discount of 99, and still has 101 soft call protection for one year.

Amortization on the term loan A is 10% per annum and on the term loan B is 1% per annum, revised from 2%, the source continued.

There is a maximum total net leverage covenant in the deal.

The company's $725 million credit facility (B1/B+) also includes a $100 million revolver.

Commitments are due by 5 p.m. ET on Thursday.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc. and KeyBanc Capital Markets are the lead banks on the deal.

Proceeds will be used to refinance existing debt and to fund a dividend.

Otter Products is a Fort Collins, Colo.-based provider of protective cases for mobile devices.

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