Helen of Troy gets new term loan, revolver

By Sara Rosenberg

New York, June 3 - Helen of Troy Ltd. closed on a new $200 million term loan and a revolving credit facility that were used to help fund the acquisition of OXO International.

Banc of America Mezzanine Capital LLC is the administrative agent on the term loan. Banc of America Securities LLC is the sole lead arranger and bookrunner, and Bank of America is the administrative agent on the revolver.

The term loan due June 1, 2005 carries an initial interest rate of Libor plus 112.5 basis points. The rate increases to Libor plus 162.5 basis points Sept. 1, Libor plus 212.5 basis points Dec. 1 and Libor plus 262.5 basis points March 1, 2005, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

The revolver due June 1, 2009 carries an interest rate that can range from Libor plus 75 to 125 basis points and a commitment fee that can range from 20 to 35 basis points, depending on leverage (see table). There is a $15 million letter of credit sublimit, and the overall revolver can be increased by $25 million under certain conditions.

The term loan and revolver both contain a fixed charge coverage ratio requirement of 1.25-to-1.00 through Nov. 30 and 1.50-to-1.00 each fiscal quarter thereafter.

There is also a leverage ratio requirement contained in the term loan and revolver agreements of 3.75-to-1.00 through Nov. 30 and 3.50-to-1.00 each fiscal quarter thereafter.

About $73.2 million drawn under the revolver and the $200 million term loan was used to fund the purchase of some assets and liabilities of OXO International from WKI Holding Co. Inc. for about $273.2 million.

Helen of Troy is an El Paso, Texas, designer, producer and marketer of brand name personal care consumer products.

Revolver Libor spread and commitment fee

Leverage ratio Libor rate Commitment fee

Less than or equal to 1.50-to-1.00 0.750% 0.200%

Greater than 1.50-to-1.00

but less than or equal to 2.00-to-1.00 0.875% 0.250%

Greater than 2.00-to-1.00

but less than or equal to 2.50-to-1.00 1.000% 0.250%

Greater than 2.50-to-1.00

but less than or equal to 3.00-to-1.00 1.125% 0.300%

Greater than 3.00-to-1.00 1.250% 0.350%

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