Otter Products firms $500 million term loan B at Libor plus 475 bps

By Sara Rosenberg

New York, May 30 - Otter Products LLC finalized pricing on its $500 million six-year term loan B 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 $125 million five-year term loan A.

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.

Earlier in syndication, the term loan B was downsized from $625 million as the term loan A was added to the deal, and amortization on the B loan was decreased from 2% per annum.

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.