Hillman Group launches term loans at Libor plus 300-325 bps

By Sara Rosenberg

New York, Feb. 16 – Hillman Group Inc. released price talk on its $835 million seven-year first-lien term loan B-1 (B+), $150 million seven-year first-lien term loan B-2 (B+) and $200 million first-lien delayed-draw term loan (B+) with availability for 24 months in connection with its lender call on Tuesday, according to a market source.

All three term loan tranches, which will be allocated as a strip, are talked at Libor plus 300 basis points to 325 bps with a 0.5% Libor floor and an original issue discount of 99.5, the source said.

The term loans have 101 soft call protection for six months, and ticking fees paid from the time of allocations of half the margin for days 46 to 90 and the full margin thereafter.

Delayed-draw term loan ticking fees paid from closing are half the margin from days 61 to 120 and the full margin thereafter.

The company’s $1.435 billion of credit facilities also include a $250 million five-year ABL revolver.

Jefferies LLC and Barclays are the lead arrangers on the deal.

Commitments are due at noon ET on Feb. 23, the source added.

Proceeds will be used in conjunction with the merger with Landcadia Holdings III Inc., a publicly traded special purpose acquisition company.

The transaction implies an enterprise valuation for Hillman of $2.642 billion.

Closing is expected in the second quarter, subject to approval of the stockholders of Landcadia III and of Hillman and other customary conditions.

Hillman is a Cincinnati-based distributor of hardware and home improvement products, personal protective equipment and robotic kiosk technologies.

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