Rough Country trims add-on first-lien term loan size to $66.5 million

By Sara Rosenberg

New York, June 7 – Rough Country downsized its fungible add-on first-lien term loan to $66.5 million from $77 million as the decision was made to use more cash on the balance sheet and revolving credit facility borrowings since cash generation was stronger than expected, according to a market source.

The add-on loan is priced at Libor plus 375 basis points with a leverage-based step-down to Libor plus 350 bps and a 1% Libor floor, which matches existing term loan pricing, and is being issued in line with talk at an original issue discount of 99.5.

Golub Capital is lead on the transaction.

Proceeds will be used with the cash and revolver draw to repay an existing $85 million second-lien term loan.

Including the add-on, the first-lien term loan will total about $260 million.

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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