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Trico Group lifts incremental first-lien term loan to $255 million
By Sara Rosenberg
New York, Feb. 20 – Trico Group LLC upsized its incremental first-lien term loan due February 2024 to $255 million from $235 million and set pricing at Libor plus 700 basis points, the high end of the Libor plus 675 bps to 700 bps talk, according to a market source.
The incremental first-lien term loan still has a 1% Libor floor, an original issue discount of 96 plus a 1% fee, hard call protection of 102 in year one and 101 in year two, and amortization of 2.5% per annum that steps up to 5% per annum.
As before, the company is also getting a $100 million second-lien term loan due February 2025 that is priced at Libor plus 900 bps cash plus 2% PIK with a 1% Libor floor, and has call protection of 103 in year one, 102 in year two and 101 in year three.
Covenants include a total net leverage ratio of 5.25 times with step-downs.
Credit Suisse Securities (USA) LLC and FTI Capital Advisors are the leads on the deal.
Commitments remained due at 5 p.m. ET on Wednesday, the source added.
Proceeds will be used to fund the acquisition of Fram Group.
Along with this transaction, lenders to the existing $464 million first-lien term loan are still being offered the option to exchange the existing debt into a new tranche priced at Libor plus 700 bps for fungibility and are being offered a 1% roll fee.
Whatever is not exchanged under the existing first-lien term loan will remain outstanding as is.
Current pricing on the existing first-lien term loan is Libor plus 650 bps with a 1% Libor floor.
Trico is a Rochester Hills, Mich.-based manufacturer of automotive aftermarket products.
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