Apex Tool prices $350 million second-lien loan at SOFR plus 1,000 bps

By Sara Rosenberg

New York, Feb. 4 – Apex Tool Group LLC priced its $350 million privately placed eight-year second-lien term loan (Caa2/CCC+) at SOFR+CSA plus 1,000 basis points with a 0.5% floor and an original issue discount of 98, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The second-lien term loan is non-callable for one year, then at 103 in year two and 101.5 in year three, the source said.

As previously reported, the company is also getting an $855 million seven-year senior secured first-lien term loan (B1/B-) priced at SOFR+CSA plus 525 bps with a 0.5% floor and an original issue discount of 99.5.

The first-lien term loan has 101 soft call protection for six months, and CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

During syndication, pricing on the first-lien term loan firmed at the low end of the SOFR+CSA plus 525 bps to 550 bps talk and the discount was set at the tight end of the 99 to 99.5 talk.

Barclays is the lead arranger and administrative agent on the deal.

Proceeds will be used with new cash equity from Bain Capital to refinance the company’s existing capital structure.

Closing is expected on Tuesday.

Apex Tool is a Sparks, Md.-based manufacturer and supplier of hand and power tools for industrial, commercial and demanding do-it-yourself applications.

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