American Bath adds back delayed-draw tranche, updates pricing

By Sara Rosenberg

New York, Nov. 19 – American Bath Group LLC (CP Atlas Buyer Inc.) returned its $1.2 billion seven-year first-lien term loan (B2/B) to a $900 million funded and a $300 million delayed-draw structure after revising it early this week to an all funded tranche, according to a market source.

Also, pricing on the term loan firmed at Libor plus 450 basis points, the low end of the Libor plus 450 bps to 475 bps talk, and a 25 bps step-down was added at 0.5x inside closing leverage, the source said.

Furthermore, the original issue discount on the term loan was changed to 99 from 98.

The term loan still has a 0.75% Libor floor, 101 soft call protection for six months and amortization of 1% per annum.

Credit Suisse Securities (USA) LLC, RBC Capital Markets, BofA Securities Inc., BMO Capital Markets Corp., Truist Securities Inc., Barclays and UBS Investment Bank are the lead arrangers on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used with $335 million of notes to help fund the buyout of the company by Centerbridge Partners LP from Lone Star Funds.

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

American Bath is an Arlington, Tex.-based manufacturer of showers, bathtubs and related accessories.

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