Dimora Brands cuts second-lien loan to $50 million, updates pricing

By Sara Rosenberg

New York, Aug. 17 – Dimora Brands Inc. downsized its eight-year covenant-light second-lien term loan to $50 million from $65 million and increased pricing to Libor plus 850 basis points from talk of Libor plus 800 bps to 825 bps, according to a market source.

Also, the original issue discount on the second-lien term loan was changed to 98 from 98.5, the source said.

Regarding the company’s $255 million seven-year covenant-light first-lien term loan, pricing firmed at Libor plus 400 bps, the low end of the Libor plus 400 bps to 425 bps talk.

Other changes included removing the 12 month MFN sunset so that the 50 bps MFN is for life and making it applicable for debt maturing within 24 months of initial term loans versus 12 months, and revising the incremental secured net leverage ratio to 6 times from 6.25 times, the source continued.

Furthermore, the incremental maturity carve-out was removed, the available amount grower prong was removed, the EBITDA adjustment time horizon was modified to 18 months from 24 months and pro forma price increases plus new contracts was removed.

The second-lien term loan still has a 1% Libor floor and call protection of 102 in year one and 101 in year two, and the first-lien term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Antares Capital and Bank of Ireland are the bookrunners on the deal.

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

The company is owned by the Jordan Co.

Dimora, formerly known as Top Knobs, is a Dallas-based designer, distributor, and manufacturer of decorative and functional hardware as well as decorative wood and other products for the kitchen and bath industry.

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