Distribution International flexes term loan to Libor plus 575 bps

By Sara Rosenberg

New York, June 4 – Distribution International increased pricing on its $206 million amended and extended first-lien term loan due Dec. 15, 2023 to Libor plus 575 basis points from Libor plus 550 bps, according to a market source.

Also, the term loan now has 101 hard call protection for one year, the source said.

The term loan still has a 1% Libor floor.

RBC Capital Markets is the lead on the deal.

Lenders are being offered a 50 bps amendment fee.

Commitments remained due at 5 p.m. ET on Tuesday, the source added.

Proceeds will be used to amend and extend an existing $206 million first-lien term loan due Dec. 15, 2021 and priced at Libor plus 500 bps with a 1% Libor floor.

The amendment and extension is being done in conjunction with an acquisition.

Funding for the acquisition will come from $25.6 million of sponsor equity and $25 million of incremental privately placed second-lien debt.

Distribution International, a portfolio company of Advent International, is a Houston-based distributor of mechanical and industrial insulation and accessory products for the industrial, commercial and marine product markets.

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