EOC Group increases term loan sizes, updates first-lien pricing

By Sara Rosenberg

New York, March 15 – EOC Group Inc. upsized its seven-year first-lien term loan to $1,115,000,000 from $1.09 billion and its privately placed eight-year second-lien term loan to $445 million from $435 million, according to a market source.

Also, pricing on the first-lien term loan and on the $178.5 million delayed-draw seven-year first-lien term loan firmed at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, the source said.

Furthermore, the delayed-draw commitment fee was changed to 1% for the first eight months, 2% for months nine through 16 and 3% for months 17 through 24, from 1% per annum for 24 months.

As before, the first-lien term loan debt has a 25 bps step-down based on leverage and a 25 bps step-down following an initial public offering, a 0% Libor floor and an original issue discount of 99.5.

The first-lien term loan has 101 call protection for six months.

The first-lien term loan debt is being sold as a strip.

The company’s now $1.91 billion of credit facilities also include a $100 million revolver and a $71.5 million privately placed delayed-draw eight-year second-lien term loan.

Call protection on the second-lien term loan is 102 in year one and 101 in year two.

Jefferies, Antares Capital, KKR Capital Markets, Angel Island and Cowen are the lead arrangers on the deal.

Recommitments were scheduled to be due at noon ET on Thursday, the source added.

Proceeds will be used to fund Golden Gate Capital’s acquisition of Mavis Discount Tire and the merger of Mavis with Express Oil Change & Tire Engineers, an existing Golden Gate portfolio company. Funds from the term loan upsizings will finance recently closed acquisitions.

The merger is expected to close in the first half of this year.

Mavis is a Millwood, N.Y.-based tire and automotive service provider. Express Oil is a Birmingham, Ala.-based automotive service platform.

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