International Textile reveals talk on $710 million of term loans

By Sara Rosenberg

New York, April 4 – International Textile Group Inc. released price talk on its $575 million seven-year covenant-light first-lien term loan (B1/B) and $135 million eight-year covenant-light second-lien term loan (B3/B-) in connection with its bank meeting on Wednesday, according to a market source.

Talk on the first-lien term loan is Libor plus 450 basis points to 475 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 850 bps to 875 bps with a 0% Libor floor and a discount of 98.5, the source said.

The first-lien term loan has 101 soft call protection for six months and the second-lien term loan has hard call protection of 103 in year one, 102 in year two and 101 in year three.

Bank of America Merrill Lynch, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, Jefferies LLC and HSBC Securities (USA) Inc. are the lead arrangers on the $710 million of term loans.

Commitments are due at noon ET on April 18, the source added.

Proceeds will be used to finance the acquisition of American & Efird, a Mt. Holly, N.C.-based manufacturer of sewing thread, embroidery thread and technical textiles, and to refinance existing debt.

International Textile Group is a Greensboro, N.C.-based manufacturer of industrial and technical threads and woven fabrics.

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