Traeger flexes $560 million of term loans to Libor plus 350 bps

By Sara Rosenberg

New York, June 24 – Traeger (TGP Holdings III LLC) reduced pricing on its $510 million seven-year first-lien term loan and $50 million delayed-draw first-lien term loan to Libor plus 350 basis points from Libor plus 400 bps, according to a market source.

Also, a 25 bps pricing step-down upon an initial public offering and a 25 bps step-down upon an upgrade to B1 (stable) were added to the term loan, and the original issue discount firmed at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The term loan debt still has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $685 million of credit facilities (B2/B) also include a $125 million revolver.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc., MUFG, Jefferies LLC, BMO Capital Markets and RBC Capital Markets are the lead arrangers on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance existing debt, fund cash to the balance sheet, and pay related fees and expenses.

Traeger is a Salt Lake City-based designer and marketer of outdoor cooking products.

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