Hillman gets $275 million amended and restated credit facility

By Sara Rosenberg

New York, Aug. 1 - The Hillman Cos. Inc. closed on a $275 million amended and restated credit facility, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

The facility consists of a $40 million revolver and a $235 million term loan B, with both tranches initially priced at Libor plus 300 basis points.

Pricing on the term loan B can drop to Libor plus 275 bps is senior leverage is less than 2.75 to 1.00.

Pricing on the revolver can range from Libor plus 225 to 300 bps based on leverage. The revolver has a 50 bps commitment fee.

Merrill Lynch and JPMorgan acted as joint lead arrangers and joint bookrunners on the deal that closed July 21, with Merrill the administrative agent and JPMorgan syndication agent.

The new facility replaces the company's previous credit facility, with the significant differences between the facilities being an increase in borrowings under the term loan of $22.3 million, a reduction in the term loan interest rate by 25 bps, a reduction in the leverage ratio of 0.25 turns and a reduction in the interest coverage ratio to 2.5.

Hillman is a Cincinnati-based distributor of small hardware merchandise.

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