Hunter Douglas shifts funds between U.S. and euro term loans

By Sara Rosenberg

New York, Feb. 9 – Hunter Douglas upsized its U.S. seven-year term loan B to $3.5 billion from $3.1 billion and downsized its euro seven-year term loan B to €1 billion from €1.35 billion, according to a market source.

Additionally, pricing on the U.S. term loan firmed at SOFR plus 350 basis points, the low end of the SOFR plus 350 bps to 375 bps talk, and pricing on the euro term loan was set at Euribor plus 400 bps, the high end of the Euribor plus 375 bps to 400 bps talk, the source said.

Also, the term loans saw the removal of one 25 bps step-down based on first-lien net leverage and a 25 bps step-down upon an initial public offering, leaving one 25 bps step-down at 3.75x first-lien net leverage.

Furthermore, MFN was changed to 50 bps for 12 months from 100 bps for six months and carve-outs were revised, modifications were made to various baskets, and J Crew, Chewy and Serta protections were added.

The U.S. term loan still has a 0.5% floor and an original issue discount of 99.5, the euro term loan still has a 0% floor and a discount of 99.5, and both term loans (B1/B+) still have 101 soft call protection for six months.

JPMorgan Chase Bank and Morgan Stanley Senior Funding Inc. are joint lead arrangers on the deal and bookrunners with BofA Securities Inc., Barclays, BNP Paribas Securities Corp., MUFG, Rabobank, Goldman Sachs, Credit Suisse and ING.

Recommitments for the U.S. term loan were scheduled to be due at 11 a.m. ET on Wednesday, the source added.

Proceeds will be used to help fund the buyout of the company by 3G Capital for €175 per ordinary share, implying an enterprise value of about $7.1 billion. The Sonnenberg family will continue to hold a 25% interest in the company.

Closing is expected this quarter, subject to limited conditions.

Hunter Douglas is a Rotterdam, The Netherlands-based manufacturer of window coverings and architectural products.

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