Hillman approximately $260 million credit facility to launch Thursday

By Sara Rosenberg

New York, March 8 - The Hillman Cos. Inc. is scheduled to hold a bank meeting on Thursday for its proposed credit facility sized at approximately $260 million, according to a market source. Merrill Lynch and JPMorgan are the lead banks on the deal, with Merrill listed on the left.

The facility is roughly expected to consist of a $40 million revolver and a $220 million term loan B, according to the source.

Price talk will not be revealed until Thursday, the source added.

Proceeds will be used to help support an affiliate of Code Hennessy & Simmons LLC's buyout of Hillman from Allied Capital Corp.

The definitive acquisition agreement places a total transaction value of about $510 million for the sale of the company, including repayment of outstanding debt and adding the value of the company's outstanding trust preferred shares, according to an Allied Capital news release.

Allied Capital expects to be repaid its $44 million in outstanding mezzanine debt but also expects to provide up to $47.5 million in new mezzanine financing to Hillman in conjunction with the transaction.

Hillman is a Cincinnati manufacturer of key making equipment and distributor of key blanks, fasteners, signage, and other small hardware components.

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