Wheel Pros firms $1 billion term loan at Libor plus 450 bps

By Sara Rosenberg

New York, April 23 – Wheel Pros Inc. finalized pricing on its $1 billion seven-year covenant-lite first-lien term loan (B2/B-) at Libor plus 450 basis points, the low end of the Libor plus 450 bps to 475 bps talk, according to a market source.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

Earlier in syndication, the company revised the MFN to 50 bps for 12 months, included J. Crew, Serta and Chewy provisions, and set the inside maturity basket at the greater of $105 million and 50% of EBITDA.

Deutsche Bank Securities Inc., Jefferies LLC, Credit Suisse Securities (USA) LLC, KKR Capital Markets, UBS Investment Bank and Wells Fargo Securities LLC are the bookrunners on the deal.

Proceeds will be used to fund the acquisition of the company by Fund Icon Partners III, a single asset investment vehicle managed by Clearlake Capital Group as general partner, from Clearlake managed funds and refinance existing debt.

Other funds for the transaction will come from $365 million of senior notes.

Closing is expected this quarter.

Wheel Pros is a Denver-based distributor of proprietary branded wheels and performance tires.

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