Horizon Global finalizes $200 million term B at Libor plus 600 bps

By Sara Rosenberg

New York, May 27 – Horizon Global Corp. firmed pricing on its $200 million six-year term loan B at Libor plus 600 basis points, the wide end of revised talk of Libor plus 575 bps to 600 bps and up from initial talk of Libor plus 450 bps to 475 bps, according to a market source.

The term loan has a 1% Libor floor, an original issue discount of 98 and 101 soft call protection for two years.

Earlier in syndication, the term B was downsized from $215 million, the discount widened from 99, the call protection was extended from six months, the maturity was shortened from seven years and a net leverage covenant was added to the initially covenant-light loan.

J.P. Morgan Securities LLC, BMO Capital Markets Corp. and Wells Fargo Securities LLC are the leads on the deal.

Proceeds will be used to fund a cash distribution to TriMas Corp. in connection with Horizon’s spinoff from TriMas.

Horizon Global is a Bloomfield Hills, Mich.-based manufacturer and distributor of towing, trailer and cargo management products for the automotive market.

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