Wrench Group to launch $200 million first-lien term loan on Wednesday

By Sara Rosenberg

New York, Sept. 28 – Wrench Group LLC is set to hold a lender call at 1 p.m. ET on Wednesday to launch a fungible $200 million incremental first-lien term loan due April 30, 2026, according to a market source.

Jefferies LLC, Macquarie Capital (USA) Inc. and Antares Capital are the bookrunners on the deal.

Pricing on the incremental first-lien term loan is Libor plus 400 basis points with a 0% Libor floor, in line with existing term loan pricing.

The incremental first-lien term loan is talked with an original issue discount of 99.25, the source said.

Both the incremental and the existing first-lien term loan are getting 101 soft call protection for six months.

Commitments are due at noon ET on Oct. 7, the source added.

The company is also obtaining a fungible $90 million privately placed incremental second-lien term loan.

Proceeds will be used to fund the acquisition of Morris-Jenkins, a provider of air conditioning, heating and plumbing services in Charlotte and the surrounding areas.

Pro forma for the transaction, the first-lien term loan will total about $569 million and the second-lien term loan will total $165 million.

Wrench Group is a provider of home maintenance and repair services specializing in heating, ventilation and air conditioning, plumbing, electrical and water quality services.

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