Truck Hero firms spreads on first- and second-lien term loans

By Sara Rosenberg

New York, May 11 – Truck Hero Inc. set pricing on its $675 million seven-year covenant-light first-lien term loan (B1/B) at Libor plus 400 basis points, the high end of the Libor plus 375 bps to 400 bps talk, and on its $250 million eight-year covenant-light second-lien term loan (Caa1/CCC+) at Libor plus 825 bps, the high end of the Libor plus 800 bps to 825 bps talk, according to a market source.

Also, the call protection on the second-lien term loan was revised to 103 in year one, 102 in year two and 101 in year three, from 102 in year one and 101 in year two, the source said.

The first-lien term loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, and the second-lien term loan still has a 1% Libor floor and a discount of 98.5.

The company’s $1,025,000,000 in senior secured credit facilities also provide for a $100 million five-year revolver (B1/B).

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

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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