Highline Aftermarket seeks $292 million credit facility via BNP

By Sara Rosenberg

New York, March 9 – Highline Aftermarket is in market with a $292 million credit facility that is split between a $40 million five-year revolver and a $252 million seven-year term loan, according to a market source.

BNP Paribas Securities Corp. is the lead on the deal.

Price talk on the term loan is Libor plus 475 basis points to 500 bps with a 1% Libor floor, an original issue discount of 99 on new money and a discount of 99.5 on old money, the source said.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Included in the credit agreement is a total net leverage covenant.

Commitments are due on March 15, the source added.

Proceeds will be used with $70 million of mezzanine debt to fund the acquisition of Service Champ and refinance existing debt.

Highline Aftermarket, a Sterling Group portfolio company, is a manufacturer and distributor of packaged automotive chemicals, lubricants and parts.

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