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Springs Window shifts funds between first- and second-lien term loans
By Sara Rosenberg
New York, May 23 – Springs Window Fashions (SIWF Holdings Inc.) upsized its seven-year first-lien term loan to $860 million from $840 million and downsized its eight-year second-lien term loan to $285 million from $305 million, according to a market source.
Also, pricing on the first-lien term loan was increased to Libor plus 425 basis points from talk in the range of Libor plus 375 bps to 400 bps and pricing on the second-lien term loan was lifted to Libor plus 850 bps from talk in the range of Libor plus 775 bps to 800 bps, the source said.
Furthermore, the original issue discount on the first-lien term loan was revised to 99 from 99.5 and the discount on the second-lien term loan was changed to 95 from 99.
Additionally, the 101 soft call protection on the first-lien term loan was extended to one year from six months and the hard call protection on the second-lien term loan was modified to 103 in year one, 102 in year two and 101 in year three from 102 in year one and 101 in year two, the source continued.
Both term loans still have a 0% Libor floor.
The company’s $1.27 billion of credit facilities also include a $125 million five-year asset-based revolver.
Barclays, Deutsche Bank Securities Inc. and Nomura are the lead arrangers on the deal.
Commitments are due at 5 p.m. ET on Thursday, the source added.
Proceeds will be used to help fund the buyout of the company by AEA Investors LP and British Columbia Investment Management Corp. from Golden Gate Capital.
Pro forma first-lien net leverage is 4.9 times, versus 4.8 times under the original structure, and total net leverage is 6.5 times.
Closing is expected in June, subject to customary regulatory approvals.
Springs Window is a Middleton, Wis.-based manufacturer and seller of custom and stock window coverings and drapery hardware.
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