West Marine sets price talk on first- and second-lien term loans

By Sara Rosenberg

New York, May 13 – West Marine Inc. (Rising Tide Holdings Inc.) released price talk on its $385 million first-lien term loan (B2/B-) and $120 million second-lien term loan (Caa2/CCC) with its lender call on Thursday, according to a market source.

Price talk on the first-lien term loan is Libor plus 475 basis points to 500 bps with a 0.75% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 825 bps to 850 bps with a 0.75% Libor floor and a discount of 98 to 98.5, the source said.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Barclays, Golub Capital LLC and Nomura are the bookrunners on the deal.

Commitments are due at 5 p.m. ET on May 26, the source added.

Proceeds will be used to help fund the buyout of the company by L Catterton from Monomoy Capital Partners.

Closing is expected this month, subject to customary conditions.

West Marine is an omni-channel provider of aftermarket products and services to the boating, fishing, sailing and watersports markets platform.

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