Aramsco eliminates step-downs from $505 million of term loans

By Sara Rosenberg

New York, Oct. 5 – Aramsco Inc. removed from its $430 million seven-year first-lien term loan and $75 million first-lien delayed-draw term loan a 25 bps leverage-based pricing step-down and a 25 bps step-down upon an initial public offering, according to a market source.

Pricing on the term loans (B3/B-) remained at SOFR plus 475 basis points with a 0% floor and an original issue discount of 98.

Ticking fees on the delayed-draw term loan are half the margin from days 61 to 120 and the full margin thereafter.

The original issue discount on the delayed-draw term loan will be paid at the time of draw.

Included in the term loan is 101 soft call protection for six months.

The company’s $585 million of credit facilities also provide for an $80 million five-year ABL revolver.

Jefferies LLC, Goldman Sachs Bank USA, Antares Capital, KeyBanc Capital Markets and SMBC are the arrangers on the deal.

Proceeds will be used to help fund the buyout of the company by American Securities.

Aramsco is a Paulsboro, N.J.-based distributor to specialty contractors and facility maintenance professionals throughout the United States and Canada.

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