Rough Country sets first-and second-lien term loan price talk

By Sara Rosenberg

New York, July 14 – Rough Country released price talk on its $555 million covenant-lite first-lien term loan (B1/B-) and $205 million covenant-lite second-lien term loan (Caa1/CCC) with its lender call on Wednesday, according to a market source.

Talk on the first-lien term loan is Libor plus 375 basis points to 400 bps with a 0.75% Libor floor and an original issue discount of 99.5, and talk on the second-lien term loan is Libor plus 700 bps with a 0.75% Libor floor and a discount of 99 to 99.5, 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.

The company’s $810 million of credit facilities also include a $50 million revolver (B1/B-).

Golub Capital and Jefferies LLC are the joint lead arrangers on the deal.

Commitments are due at noon ET on July 26, the source added.

Proceeds will be used to help fund the buyout of the company by TSG Consumer Partners from Gridiron Capital.

Closing is expected early in the third quarter.

Upon closing, Gridiron Capital and Rough Country management will remain significant investors in the company.

Rough Country is a Dyersburg, Tenn.-based provider of aftermarket performance-enhancing products and accessories to the truck, Jeep and SUV enthusiast market.

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