Rough Country cuts spread on first-lien loan to Libor plus 350 bps

By Sara Rosenberg

New York, July 22 – Rough Country lowered pricing on its $585 million covenant-lite first-lien term loan to Libor plus 350 basis points from revised talk of Libor plus 375 bps and initial talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

The first-lien term loan still has a 0.75% Libor floor, an original issue discount of 99.75 and 101 soft call protection for six months.

The company’s $810 million of credit facilities also include a $50 million revolver and a $175 million covenant-lite second-lien term loan.

Pricing on the second-lien term loan is Libor plus 675 bps with a 0.75% Libor floor and a discount of 99.5. This tranche has call protection of 102 in year one and 101 in year two.

Earlier in syndication, the first-lien term loan was upsized from $555 million and the discount was changed from 99.5, and the second-lien term loan was downsized from $205 million, pricing was lowered from Libor plus 700 bps and the discount firmed at the tight end of the 99 to 99.5 talk.

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

Recommitments are due at 5 p.m. ET on Friday, 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 on Wednesday.

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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