Truck Hero sets talk on first- and second-lien term loans with launch

By Sara Rosenberg

New York, April 26 – Truck Hero Inc. released price talk on its $675 million seven-year covenant-light first-lien term loan and $250 million eight-year covenant-light second-lien term loan with its bank meeting on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 375 basis points to 400 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps to 825 bps with a 1% Libor floor and a discount of 98.5, the source said.

Included in the first-lien term loan is 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two.

The company’s $1,025,000,000 in senior secured credit facilities also provide for a $100 million five-year revolver.

Jefferies Finance LLC, Antares Capital, Golub, Citizens Bank, Natixis and SunTrust Robinson Humphrey Inc. are the bookrunners on the deal.

Commitments are due on May 10, the source added.

Proceeds will be used to help fund the buyout of the company by CCMP Capital Advisors LLC.

As part of the transaction, TA Associates, the current holders of a majority interest in Truck Hero, and founding chief executive officer Bill Reminder and chief operating officer Kelly Kneifl will remain significant investors in the company.

Closing is expected this quarter, subject to customary conditions.

Truck Hero is an Ann Arbor, Mich.-based provider of truck bed covers and other truck and Jeep accessories.

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