HALO Branded launches $420 million credit facilities on Monday

By Sara Rosenberg

New York, June 11 – HALO Branded Solutions launched retail syndication on Monday of its $420 million of credit facilities, according to a market source.

The debt consists of a $50 million revolver (B1/B) due 2023, a $205 million first-lien term loan (B1/B) due 2025, a $90 million delayed-draw first-lien term loan (B1/B) due 2025 and a $75 million second-lien term loan (Caa1/CCC+) due 2026, the source said.

Talk on the first-lien term loan debt is Libor plus 375 basis points to 400 bps with a 0% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 800 bps with a 0% Libor floor and a discount of 99, the source continued.

Antares Capital, SunTrust Robinson Humphrey Inc., Citizens and KKR Capital Markets are the lead arrangers on the deal.

Commitments are due on June 22, the source added.

Proceeds will be used to help fund the buyout of the company by TPG Growth and management.

Closing is expected in the second quarter, subject to customary conditions, including regulatory approval.

HALO is a Sterling, Ill.-based marketing services platform that distributes promotional products and provides employee recognition services.

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