Rough Country trims incremental term loan amount to $155 million

By Sara Rosenberg

New York, Oct. 21 – Rough Country downsized its incremental term loan due May 25, 2025 to $155 million from $180 million, according to a market source.

Pricing on the incremental term loan and on the company’s extended $221 million term loan due May 25, 2025 remained at Libor plus 375 basis points with a 1% Libor floor.

As before, the new money has an original issue discount of 99 and rolled money has a 12.5 bps amendment fee.

The term loan debt has 101 soft call protection for six months.

Golub Capital is lead on the transaction.

Proceeds from the incremental debt will be used to help fund a dividend to shareholders, and the extension pushes out the maturity on the existing $221 million term loan by two years. The company will compensate for the downsized incremental term loan by using cash on hand and revolving credit facility borrowings for the dividend.

First-lien and total leverage is about 4x, the source added.

Rough Country is a Dyersburg, Tenn.-based supplier of aftermarket suspension lift kits and components to the off-road SUV and light truck enthusiast market.

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