Safe-Guard Products launches $240 million credit facility to investors

By Sara Rosenberg

New York, Dec. 3 - Safe-Guard Products International LLC held a bank meeting on Monday to launch a $240 million credit facility, according to sources.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The facility consists of a $20 million revolver, a $170 million six-year first-lien term loan and a $50 million second-lien term loan that is already spoken for, sources said.

Price talk on the first-lien term loan is Libor plus 575 basis points to Libor plus 600 bps with a 1.25% Libor floor and an original issue discount of 98, sources continued.

The first-lien term loan has 101 soft call protection for one year.

Proceeds will be used to fund the buyout of the company by GS Principal Investments from HIG Capital.

Commitments are due on Dec. 14.

Safe-Guard Products is an Atlanta-based provider of after-market warranty products and services for new, used and leased motor vehicles.

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