OtterBox ups spread on $400 million term loan B to Libor plus 425 bps

By Sara Rosenberg

New York, May 10 - OtterBox increased pricing on its $400 million six-year term loan B (B1/B+) to Libor plus 425 basis points from Libor plus 400 bps, according to a market source.

Additionally, amortization on the loan was revised to 5% in year one, 7½% in year two and 10% annually thereafter, from just 1% per annum, the source said.

The loan still has a 1% Libor floor, an original issue discount of 98½ and 101 soft call protection for one year.

The company's new $550 million credit facility also includes a $150 million three-year ABL revolver that is priced at Libor plus 175 bps.

Commitments were due at 5 p.m. ET on Friday.

Closing on the credit facility is expected to occur on May 17, the source added.

Wells Fargo Securities LLC is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of LifeProof, a San Diego-based maker of protective cases for Smartphones and Tablet PCs.

OtterBox is a Fort Collins, Colo.-based producer of protective solutions for global handheld manufacturers, wireless carriers and distributors.

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