Dorman Products adds $500 million five-year term loan

By Wendy Van Sickle

Columbus, Ohio, Oct. 4 – Dorman Products Inc. entered into an amendment to its August 2021 credit agreement on Tuesday to provide for a $500 million term loan that matures in five years, according to an 8-K filing with the Securities and Exchange Commission.

Proceeds were used to acquire SuperATV for $490 million, which amount is subject to some adjustments, and to repay SuperATV’s existing credit facility.

Borrowings will bear interest at term SOFR plus an applicable margin that is initially 150 basis points and can range from 100 bps to 200 bps, depending on total net leverage ratio.

The commitment fee is initially equal to 20 bps and thereafter ranges from 12.5 bps to 25 bps based on the total net leverage ratio.

Bank of America, NA is the administrative agent and swingline lender.

Bank of America, PNC Capital Markets LLC and Wells Fargo Securities, LLC were lead arrangers and were joined as bookrunners by BMO Capital Markets Corp.

BMO and Wells Fargo Bank, NA were the co-syndication agents.

TD Bank, NA was the co-documentation agent.

Dorman is a Colmar, Pa.-based supplier of automotive products and home hardware.

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