Total Safety $130 million credit facility to launch Wednesday

By Sara Rosenberg

New York, Nov. 13 - Total Safety Inc. is scheduled to hold a bank meeting on Wednesday morning to launch its proposed $130 million credit facility, according to a market source.

Credit Suisse is the lead bank on the deal.

The facility consists of a $15 million revolver talked at Libor plus 300 basis points, a $75 million first-lien term loan talked at Libor plus 300 bps and a $40 million second-lien term loan talked at Libor plus 700 bps, the source said.

Call premiums on the second-lien are 102 in year one and 101 in year two, the source added.

Expected ratings on the first-lien debt are Ba3/B- and expected corporate ratings are B2/B-.

Proceeds from the facility, along with $67 million of cash equity, will be used to fund DLJ Merchant Banking's acquisition of company from H.I.G. Capital.

First-lien leverage will be around mid-3.0 times and total leverage will be around mid-5.0 times.

Total Safety is a Houston-based provider of safety services and products to the industrial, energy and environmental markets.

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