Capital Safety tightens first- and second-lien term loan pricing, OIDs

By Sara Rosenberg

New York, March 26 - Capital Safety North America Holdings Inc. reduced pricing on its $700 million seven-year first-lien term loan (B1/B) to Libor plus 300 basis points from Libor plus 325 bps and on its $135 million eight-year second-lien term loan (Caa1/CCC+) to Libor plus 550 bps from Libor plus 625 bps, according to a market source.

Also, a step-down was added to the first-lien term loan to Libor plus 275 bps at 4.5 times leverage, the source said.

In addition, the original issue discount on the first-lien term loan was revised to 99 7/8 from 993/4, and the discount on the second-lien term loan was tightened to 99 7/8 from 991/2, the source continued.

Both term loans still have a 1% Libor floor, the first-lien term loan still has 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

The company's $900 million credit facility also includes a $65 million five-year revolver (B1/B).

Recommitments were due at 12:30 p.m. ET on Wednesday, the source added.

UBS Securities LLC, Morgan Stanley Senior Funding Inc., Goldman Sachs Bank USA, Mizuho Securities USA Inc. and KKR Capital Markets are the bookrunners on the deal.

Proceeds will be used to repay existing debt and fund a distribution to shareholders.

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

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