Werner Holding launches $230 million loan Friday

By Sara Rosenberg

New York, May 9 - Werner Holding Co. Inc. held a bank meeting for a new $230 million senior secured credit facility (Ba3/B+) on Friday, according to a company spokesman. JPMorgan and Citigroup are the lead banks on the deal.

The loan consists of a $60 million five-year revolver and a $170 million six-year term loan with an interest rate of Libor plus 325 basis points, market sources said.

The facility is part of the company's recapitalization plan. Proceeds from the new loan will be used in combination with proceeds from $65 million of newly issued convertible preferred stock to redeem $150 million of common stock and options from existing holders, including Investcorp, Werner family shareholders and management.

Leonard Green & Partners, LP has agreed to purchase the $65 million convertible offering. Upon completion of the transaction, Leonard Green will hold an ownership interest in the company of approximately 22%, the Investcorp investors will hold approximately 51% and Werner family shareholders will hold approximately 24%.

Werner, based in Greenville, Pa., makes climbing and extruded products.

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