American Trailer trims add-on loan to $350 million, sets OID at 98.75

By Sara Rosenberg

New York, July 14 – American Trailer World Corp. downsized its fungible add-on first-lien term loan (B3/B) due March 5, 2028 to $350 million from $475 million and firmed the original issue discount at 98.75, the midpoint of the 98.5 to 99 talk, according to a market source.

Also, the pricing step-down on the add-on term loan was changed to 25 basis points at 3.6x net first-lien leverage, stepping back up if leverage exceeds 3.6x, from a permanent 25 bps upon 3.6x total net leverage, the source said.

Furthermore, some changes were made to documentation.

Pricing on the add-on term loan is Libor plus 375 bps with a 0.75% Libor floor, in line with existing term loan pricing.

As before, the add-on term loan and the existing term loan are getting 101 soft call protection for six months.

Amortization on the add-on term loan is 1% per annum.

Goldman Sachs Bank USA, Barclays, Truist and Regions Bank are the lead arrangers on the deal. Goldman is the administrative agent.

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

Proceeds will be used to fund a distribution to shareholders.

Bain Capital Private Equity is the sponsor.

American Trailer World is a Richardson, Tex.-based manufacturer and distributor of professional grade trailers, consumer grade trailers, truck equipment and retail parts.

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