Parts Town finalizes spreads on first- and second-lien term loans

By Sara Rosenberg

New York, Dec. 4 – Parts Town (PT Holdings LLC) set pricing on its $200 million seven-year first-lien term loan (B2/B-) at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, and on its $82.5 million eight-year second-lien term loan (Caa2/CCC) at Libor plus 800 bps, the tight side of the Libor plus 800 bps to 825 bps talk, according to a market source.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months, and the second-lien term loan still has a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

The company’s $332.5 million of credit facilities also provide for a $50 million ABL revolver.

Jefferies LLC, Citizens Bank and Golub are the arrangers on the term loans, and Citizens is the arranger on the ABL.

Proceeds will be used to refinance the existing capital structure.

Parts Town is an Addison, Ill.-based OEM parts distributor and service provider to the foodservice equipment market.

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