Capital Safety launches $420 million facility at Libor plus 525 bps

By Sara Rosenberg

New York, Dec. 7 - Capital Safety launched its $420 million senior secured credit facility on Wednesday with price talk of Libor plus 525 basis points, according to a market source.

The facility consists of a $45 million five-year revolver and a $375 million seven-year term loan B.

The revolver has no Libor floor, while the term loan B has a 1.25% Libor floor, and both tranches are being offered at an original issue discount of 98, the source said.

Also, the term loan B has 101 soft call protection for one year.

Commitments are due on Dec. 15.

UBS Investment Bank, Morgan Stanley Senior Funding Inc., Mizuho Securities USA Inc. and KKR Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the $1.12 billion acquisition of the company by Kohlberg Kravis Roberts & Co. LP from Arle Capital Partners.

Other funds will come from $175 million of junior capital.

The company had previously said that KKR Capital Markets would be arranging financing in the form of senior unsecured notes with Crescent Capital Group.

Closing is expected in January, subject to customary conditions, including regulatory approval.

Capital Safety is a Red Wing, Minn.-based provider of fall protection equipment.

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