Apex Tool wraps $874 million term loan B at Libor plus 550 bps

By Sara Rosenberg

New York, Aug. 20 – Apex Tool Group LLC completed syndication of its $874,467,344 term loan B due August 2024 in line with talk at Libor plus 550 basis points with two 25 bps step-downs at trailing gross secured leverage ratio of less than 4.5x and less than 4.0x and a 1.25% Libor floor, according to a market source.

The term loan has 101 soft call protection for six months.

The company’s $1,049,000,000 of senior secured credit facilities (B2/B-) also include a $175 million revolver due April 2024.

Barclays is the lead arranger on the deal.

Proceeds will be used to amend and extend by 2.5 years an existing revolver and term loan B. Current term loan B pricing is Libor plus 375 bps with a 1.25% Libor floor.

Lenders were offered a 50 bps fee.

Allocations went out on Monday, and closing is expected on Wednesday, the source added.

Bain Capital is the sponsor.

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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