Reece Group changes $95 million add-on term loan OID to 99.875

By Sara Rosenberg

New York, Sept. 6 – Reece Group tightened the original issue discount on its fungible $95 million add-on term loan to 99.875 from talk in the range 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.

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 a Burwood, Australia-based provider of plumbing, HVAC and waterworks products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.