HHI Group Holdings widens OID on $325 million term loan B to 99¼

By Sara Rosenberg

New York, March 18 - HHI Group Holdings LLC increased the original issue discount on its $325 million term loan B (B2/B+) to 99¼ from 991/2, according to a market source.

Pricing on the loan was left unchanged at Libor plus 550 basis points with a 1.5% Libor floor, and there is still 101 soft call protection for one year.

Bank of America Merrill Lynch, Goldman Sachs & Co. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds are being used to refinance existing debt and fund a dividend.

In early 2010 as part of a dividend recapitalization, the company got a $200 million term loan B priced at Libor plus 750 bps with a 3% Libor floor that was sold at an original issue discount of 97. Then, later in the year, the company did a $30 million term loan add-on that was also used for a dividend.

HHI is a Royal Oak, Mich.-based manufacturer of forged parts and wheel bearings and a supplier of powdered metal engine and transmission components.

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