Harbor Freight Tools flexes $1 billion term loan to Libor plus 375 bps

By Sara Rosenberg

New York, July 23 - Harbor Freight Tools USA Inc. reduced pricing on its $1 billion six-year senior secured covenant-light term loan (B1/B+) to Libor plus 375 basis points from Libor plus 400 bps, according to a market source.

Also, the original issue discount on the term loan was changed to 99¾ from 99, the source said.

The loan still has a 1% Libor floor and 101 repricing protection for one year.

Commitments are due at noon ET on Wednesday, the source added.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

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

Harbor Freight is a Camarillo, Calif.-based provider of tools and equipment.

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