Hoffmaster adjusts tranching, raises second-lien term loan pricing

By Sara Rosenberg

New York, May 1 - Hoffmaster Group Inc. upsized its six-year first-lien covenant-light term loan to $280 million from $265 million and downsized its seven-year second-lien covenant-light term loan to $84 million from $104 million, according to a market source.

Also, pricing on the second-lien term loan was increased to Libor plus 900 basis points from Libor plus 825 bps, the original issue discount was revised to 98½ from 99, and the call protection was changed to 103 in year one, 102 in year two and 101 in year three from 103 in year one and 101 in year two, the source said.

Pricing on the first-lien term loan remained at Libor plus 425 bps, but a step-down was added to Libor plus 400 bps at 3.25 times first-lien leverage, and the original issue discount firmed at 99, the wide end of the 99 to 99½ talk, the source continued.

As before, both term loans have a 1% Libor floor and the first-lien term loan has 101 soft call protection for six months.

The company's now $399 million credit facility, down from $404 million, also includes a $35 million revolver.

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

Credit Suisse Securities (USA) LLC, Jefferies Finance LLC and Macquarie Capital are the leads on the deal.

Proceeds will be used to refinance existing debt.

Hoffmaster is an Oshkosh, Wis.-based producer of specialty disposable tabletop products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.