Tradesmen discloses talk on $310 million in term loans with launch

By Sara Rosenberg

New York, Jan. 25 – Tradesmen International Inc. released price talk on its $310 million in term loans with its bank meeting on Wednesday, according to a market source.

The $230 million seven-year first-lien term loan (B1/B) is talked at Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, and the $80 million eight-year second-lien term loan (Caa1/CCC+) is talked at Libor plus 850 bps to 875 bps with a 1% Libor floor and a discount of 98.5, the source said.

The first-lien term loan has 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.

Included in the loans is a net total leverage covenant.

The company’s $350 million credit facility also provides for a $40 million cash flow revolver.

Deutsche Bank Securities Inc., Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Credit Suisse Securities (USA) LLC are the bookrunners on the deal.

Commitments are due on Feb. 8, the source added.

Proceeds will be used to help fund the buyout of the company by Blackstone from Wellspring Capital Management LLC.

Closing is expected this quarter.

Tradesmen is a Macedonia, Ohio-based agency-based provider of outsourced skilled craftsmen to non-residential construction and industrial contractors.

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