Highline Aftermarket ups term loan to $257 million, lowers pricing

By Sara Rosenberg

New York, March 17 – Highline Aftermarket upsized its seven-year term loan to $257 million from $252 million and trimmed pricing to Libor plus 425 basis points from talk of Libor plus 475 bps to 500 bps, according to a market source.

Also, the original issue discount on new money for the term loan was tightened to 99.5 from 99, the source said. Old money discount for the loan remained at 99.5.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

The company’s now $297 million credit facility, up from $292 million, provides for a $40 million five-year revolver as well.

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

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

Recommitments were scheduled to be due by the end of the day on Friday, the source added.

Proceeds will be used with $65 million of mezzanine debt, downsized from $70 million with the term loan upsizing, to fund the acquisition of Service Champ and refinance existing debt.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.