Hoffmaster Group to launch $404 million credit facility on Tuesday

By Sara Rosenberg

New York, April 14 - Hoffmaster Group Inc. is scheduled to hold a bank meeting at 11:30 a.m. ET on Tuesday to launch a $404 million credit facility, according to a market source.

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

The facility consists of a $35 million revolver, a $265 million six-year first-lien covenant-light term loan and a $104 million seven-year second-lien covenant-light term loan, the source said.

Price talk on the first-lien term loan is Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, and talk on the second-lien term loan is Libor plus 825 bps with a 1% Libor floor and a discount of 99, the source continued.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 103 in year one and 101 in year two.

Proceeds will be used to refinance existing debt.

Commitments are due on April 30, the source added.

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

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