SouthernCarlson moves funds between first- and second-lien term loans

By Sara Rosenberg

New York, March 23 – SouthernCarlson Inc. upsized its first-lien term loan to $235 million from $225 million and downsized its second-lien term loan to $75 million from $85 million, according to a market source.

Additionally, pricing on the first-lien term loan firmed at Libor plus 425 basis points, the high end of the Libor plus 400 bps to 425 bps talk, and the 101 soft call protection was extended to one year from six months, the source said.

Furthermore, pricing on the second-lien term loan was increased to Libor plus 875 bps from talk in the range of Libor plus 800 bps to 825 bps and the discount widened to 98.5 from 99.

As before, the term loans have a 1% Libor floor, the first-lien term loan has an original issue discount of 99.5, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

The company’s $345 million of credit facilities also include a $35 million revolver (B2/B+).

KKR Capital Markets is the lead on the deal.

Recommitments were scheduled to be due at 2 p.m. ET on Friday, the source added.

Proceeds will be used to refinance existing debt and fund a dividend.

SouthernCarlson is an Omaha-based distributor of fastening and packaging materials, tools and related building materials.

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