Crosby Worldwide sets first- and second-lien loan talk with launch

By Sara Rosenberg

New York, Oct. 31 - Crosby Worldwide Ltd. released price talk on its $530 million seven-year first-lien term loan and $120 million eight-year second-lien term loan with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 325 basis points with a 1% Libor floor and an original issue discount of 991/2, and the second-lien term loan is talked at Libor plus 700 bps with a 1% Libor floor and a discount of 99.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company's $715 million senior secured credit facility also provides for a $65 million five-year revolver.

Commitments are due on Nov. 12, the source added.

Morgan Stanley Senior Funding Inc., UBS Securities LLC, KKR Capital Markets, Deutsche Bank Securities Inc., Mizuho Securities USA Inc. and HSBC Securities (USA) Inc. are the lead banks on the deal.

Proceeds will be used to fund the buyout of the Crosby Group and Acco Material Handling Solutions by KKR from Melrose Industries plc for about $1 billion.

Closing is expected in the fourth quarter, subject to customary regulatory approvals.

Crosby is a Tulsa, Okla.-based provider of highly engineered solutions for lifting and rigging applications across the oil and gas, construction, mining and industrial sectors. Acco is a York, Pa.-based provider of custom-built specialty material handling equipment, including a full line of hoists, industrial cranes, monorails, carts and trailers.

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