West Marine lifts first-lien loan to $400 million, updates pricing

By Sara Rosenberg

New York, May 26 – West Marine Inc. (Rising Tide Holdings Inc.) upsized its first-lien term loan to $400 million from $385 million and firmed pricing at Libor plus 475 basis points, the low end of the Libor plus 475 bps to 500 bps talk, according to a market source.

Also, pricing on the company’s $120 million second-lien term loan finalized at Libor plus 825 bps, the low end of the Libor plus 825 bps to 850 bps talk, and the original issue discount was set at 98.5, the tight end of the 98 to 98.5 talk, the source said.

Furthermore, some changes were made to documentation.

The first-lien term loan still has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan still has a 0.75% Libor floor and 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.

Final commitments were scheduled to be due at noon ET on Wednesday, the source added.

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

As a result of the first-lien term loan upsizing, the overall equity check for the buyout is being reduced.

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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