Brock Group shifts funds between term loans, updates pricing

By Sara Rosenberg

New York, March 7 - Brock Group Inc. upsized its six-year first-lien term loan B (B1/B+) to $510 million from $490 million and downsized its seven-year second-lien term loan (Caa1/B-) to $190 million from $210 million, according to a market source.

In addition, pricing on the first-lien term loan firmed at Libor plus 450 basis points, the low end of the Libor plus 450 bps to 475 bps talk, with a 1.5% Libor floor and a 99¼ offer price, down from 99, the source said.

The first-lien term loan still includes 101 soft call protection for one year.

Meanwhile, pricing on the second-lien term loan was flexed up to Libor plus 825 bps from talk of Libor plus 750 bps to 775 bps, and the discount widened to 98 from 981/2, the source continued. The 1.75% Libor floor was left unchanged.

Also, the second-lien loan is now non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four versus the initially proposed call protection of 103 in year one, 102 in year two and 101 in year three.

The company's $805 million credit facility also provides for a $105 million revolver (B1/B+).

Recommitments are due at 5 p.m. ET on Tuesday.

J.P. Morgan Securities LLC, Credit Suisse Securities LLC and Bank of America Merrill Lynch are the lead banks on the deal.

Proceeds will be used to refinance existing debt, to fund a dividend payment and for general corporate purposes.

Brock is a Houston-based provider of industrial specialty maintenance services, including painting, scaffolding and insulation.

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