Highline lifts spread on $735 million term loan to Libor plus 450 bps

By Sara Rosenberg

New York, Oct. 29 – Highline Aftermarket Acquisition LLC raised pricing on its $735 million seven-year first-lien term loan (B2/B) to Libor plus 450 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

In addition, the original issue discount talk on the term loan was changed to a range of 97 to 97.5 from 99, and then finalized late in the day at 97.25, the midpoint of revised talk, the source said.

The term loan still has a 0.75% Libor floor.

J.P. Morgan Securities LLC is the lead on the deal.

Proceeds will be used to help fund the buyout of the company by Pritzker Private Capital from the Sterling Group and its merger with Warren Distribution Inc., which is being acquired by Pritzker from chairman and chief executive officer Bob Schlott.

Closing is expected by December.

Highline is a Memphis, Tenn.-based distributor of automotive aftermarket products. Warren is an Omaha-based manufacturer of private label lubricants and automotive chemicals.

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