Crowne Group ups second-lien term loan spread to Libor plus 800 bps

By Sara Rosenberg

New York, Sept. 29 – Crowne Group LLC increased pricing on its $90 million seven-year second-lien covenant-light term loan (Caa2/CCC+) to Libor plus 800 basis points from Libor plus 775 bps, according to a market source.

As before, the second-lien term loan has a 1% Libor floor, a discount of 99, and call protection of 102 in year one and 101 in year two.

The company’s $455 million credit facility also provides for a $75 million asset-based revolver and a $290 million six-year first-lien covenant-light term loan (B2/B).

Pricing on the first-lien term loan is Libor plus 500 bps, after flexing earlier from talk of Libor plus 425 bps to 450 bps.

The first-lien term loan has a 1% Libor floor and an original issue discount of 98˝, which was revised from 99, the source continued.

Additionally, the first-lien term loan has 101 soft call protection for one year, extended from six months.

Jefferies Finance LLC is the lead arranger on the deal.

Proceeds will be used to fund the acquisition of Trico Products Corp. from Kohlberg & Co. LLC and to refinance existing debt.

Closing is subject to customary regulatory approvals.

First-lien leverage is about 2.6 times and total leverage is around 3.4 times, based on pro forma combined annual EBITDA of $113 million.

Crowne is a Cleveland-based manufacturer and distributor of aftermarket and OEM component parts for the automotive and other industrial equipment markets. Trico is a Rochester Hills, Mich.-based manufacturer, marketer and distributor of windshield wiper blades, systems and components.

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