Reece Group launches $95 million add-on term loan at 99.5-99.75 OID

By Sara Rosenberg

New York, Sept. 4 – Reece Group held a lender call on Wednesday to launch a fungible $95 million add-on term loan that is talked with an original issue discount of 99.5 to 99.75, according to a market source.

Pricing on the term loan is Libor plus 200 basis points with a 0% Libor floor.

The add-on term loan has 101 soft call protection for six months, the source said.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to help fund the acquisition of Todd Pipe & Supply LLC, a plumbing supply wholesaler, for $122 million, with a further $38 million deferred until Dec. 31, 2021 and subject to achieving certain milestones.

Other funds for the transaction will come from cash on hand.

Closing is expected on Oct. 1, subject to customary conditions.

Reece is an Australia-based provider of plumbing, HVAC and waterworks products.

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