Drew Marine shifts funds between term loans, reduces pricing

By Sara Rosenberg

New York, Nov. 15 - Drew Marine upsized its first-lien term loan (B1/B+) to $220 million from $205 million and downsized its second-lien term loan (Caa1/CCC+) to $65 million from $80 million, according to a market source.

Also, pricing on the first-lien term loan was trimmed to Libor plus 350 basis points from talk of Libor plus 375 bps to 400 bps, and pricing on the second-lien term loan was lowered to Libor plus 700 bps from talk of Libor plus 750 bps to 775 bps, the source said.

Furthermore, the original issue discount on the first-lien term loan was revised to 99 7/8 from 991/2, and the discount on the second-lien loan was tightened to 99¾ from 99, the source continued.

As before, both loans have a 1% Libor floor, the first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company's $335 million credit facility also provides for a $50 million revolver (B1/B+).

BNP Paribas Securities Corp. is the lead bank on the deal.

Proceeds will be used to fund the acquisition of Drew Marine and ACR Electronics Inc. by the Jordan Co. from J.F. Lehman.

Drew Marine is a Whippany, N.J.-based provider of technical solutions and services to the marine industry. ACR is a Fort Lauderdale, Fla.-based provider of safety products and solutions to the aviation, marine, military and commercial markets.

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