Otter Products firms $460 million term loan B at Libor plus 475 bps

By Sara Rosenberg

New York, May 30 - Otter Products LLC downsized its six-year term loan B to $460 million from a revised amount of $500 million and an initial amount of $625 million, and finalized pricing at Libor plus 475 basis points, the wide end of the Libor plus 450 bps to 475 bps talk, according to a market source.

The term loan B still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company's $725 million credit facility (B1/B+) also includes a $100 million revolver and a $165 million five-year term loan A that was upsized from $125 million with the latest term loan B downsizing, the source said.

At the time of the first term loan B downsizing, the term loan A was added to the credit facility and amortization on the B loan was decreased from 2% per annum.

Pricing on the term loan A is Libor plus 375 bps with no Libor floor and an original issue discount of 991/2.

Amortization on the term loan A is 10% per annum and on the term loan B is 1% per annum.

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

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.