International Textile shifts funds between term loans, widens pricing

By Sara Rosenberg

New York, April 18 – International Textile Group Inc. upsized its first-lien term loan to $585 million from $575 million and downsized its second-lien term loan to $125 million from $135 million, according to a market source.

Also, pricing on the first-lien term loan was increased to Libor plus 500 basis points from talk in the range of Libor plus 450 bps to 475 bps, and pricing on the second-lien term loan was lifted to Libor plus 900 bps from talk in the range of Libor plus 850 bps to 875 bps, the source said.

In addition, the Libor floor on the second-lien term loan was changed to 1% from 0% and the original issue discount was adjusted to 97 from 98.5.

Furthermore, the 101 soft call protection on the first-lien term loan was extended to one year from six months, and the call protection on the second-lien term loan was revised to non-callable for one year, then a hard call of 102 in year two and 101 in year three, from hard call protection of 103 in year one, 102 in year two and 101 in year three, the source continued.

Other changes included shortening the maturity of the first-lien term loan to six years from seven years and the maturity of the second-lien term loan to seven years from eight years and increasing amortization on the first-lien term loan to 2.5% per annum from 1%.

The first-lien term loan still has a 0% Libor floor and an original issue discount of 99.5.

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.

Recommitments are due at 2 p.m. ET on Thursday, with allocations thereafter, 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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