Glencoe flexes $130 million first-lien loan to Libor plus 650 bps

By Sara Rosenberg

New York, Nov. 20 - Glencoe Principal Holdings raised pricing on its $130 million first-lien term loan (B2/B+) to Libor plus 650 basis points from talk of Libor plus 525 bps to 550 bps, according to a market source.

Also, the original issue discount on the first-lien loan is now to be determined, versus earlier talk of 99, the maturity was shortened to five years from six years and the cash flow sweep was increased to 75% from 50%, the source said.

The first-lien term loan still has a 1% Libor floor and 101 soft call protection for one year.

The company's $200 million credit facility also includes a $25 million five-year revolver (B2/B+) and a $45 million seven-year second-lien term loan (Caa2/CCC+).

Talk on the second-lien loan is unchanged at Libor plus 900 bps with a 1% Libor floor, a discount of 981/2, and call protection of 102 in year one and 101 in year two.

Covenants include leverage, interest coverage and capital expenditures.

Recommitments are due on Friday.

Macquarie Capital is the arranger on the deal.

Proceeds will be used to refinance existing subsidiary debt, acquire certain outstanding equity interests held by third parties other than Glencoe Principal Holdings and management, and fund a distribution to sponsor Glencoe Capital.

Co-borrowers under the credit facility are subsidiaries Dixie Chemical, a Pasadena, Texas-based manufacturer of high-purity chemicals, complex compounds and chemical intermediates, Child Development Schools, a Columbus, Ga.-based for-profit preschool education and early care provider, and Polyair Corp., a Toronto-based manufacturer and marketer of protective packaging products.

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