Truck Hero flexes $1.55 billion term loan to Libor plus 375 bps

By Sara Rosenberg

New York, Jan. 20 – Truck Hero Inc. lowered pricing on its $1.55 billion seven-year senior secured first-lien term loan (B2/B-) to Libor plus 375 basis points from talk in the range of Libor plus 400 bps to 425 bps, according to a market source.

Furthermore, the issue price on the term loan was revised to par from 99, the source said.

The term loan still has two 25 bps leverage-based step-downs and one 25 bps initial public offering-based step-down, a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $1.75 billion of credit facilities also include a $200 million five-year ABL revolver.

Jefferies LLC, BofA Securities Inc., Credit Suisse Securities (USA) LLC, KKR Capital Markets and Stifel are the joint lead arrangers on the deal.

Proceeds will be used with $600 million of senior notes to help fund the buyout of the company by a consortium led by L Catterton.

Closing is expected this quarter, subject to customary conditions.

CCMP Capital, among other shareholders, and Truck Hero’s founding chief executive officer, Bill Reminder, will remain investors in the company.

Truck Hero is an Ann Arbor, Mich.-based provider of aftermarket accessories for pickup trucks and Jeep vehicles.

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