American Safety Razor launches $290 million facility via Goldman

By Sara Rosenberg

New York, July 13 - American Safety Razor Co. held a bank meeting on Tuesday to launch its proposed $290 million credit facility, according to a market source.

Goldman Sachs is the lead bank on the deal.

The facility consists of a $20 million revolver, a $120 million first-lien term loan and a $150 million second-lien term loan, the source said.

The revolver and the first-lien term loan will be a debtor-in-possession facility for six months and then they will convert into a 41/2-year exit facility.

The second-lien term loan is convertible into equity upon the company's emergence from bankruptcy.

Price talk on the revolver and first-lien term loan is Libor plus 750 basis points with a 2% Libor floor and an original issue discount of 98, and price talk on the second-lien is 1% cash plus 14% PIK, the source continued.

American Safety Razor is a Cedar Knolls, N.J.-based producer of shaving, medical and industrial blades.

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