Truck Hero talks upsized $600 million eight-year notes at 6¼%-6½%

By Paul A. Harris

Portland, Ore., Jan. 20 – Truck Hero Inc. upsized its offering of eight-year non-call three-year senior notes (Caa2/CCC) to $600 million from $550 million and talked the notes to yield 6¼% to 6½%, according to market sources.

Official talk comes inside of initial guidance in the 7% area.

Books close at noon ET on Wednesday, and the deal is set to price and allocate thereafter.

Jefferies LLC, BofA Securities Inc., KKR Capital Markets LLC and Stifel, Nicolaus & Co. Inc. are joint bookrunners for Rule 144A and Regulation S offering.

There is a 40% equity clawback prior to year three at par plus the coupon and a 100% IPO clawback at par plus the coupon in years two and three.

Proceeds together with a concurrent first-lien term loan will be used to fund the acquisition of Truck Hero by L Catterton and CCMP Capital. The additional proceeds resulting from the $50 million upsizing of the deal will be used to reduce the equity portion of the acquisition.

Truck Hero is an Ann Arbor, Mich.-based marketer of accessories for trucks and jeeps.

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