First Brands to launch $710 million incremental term loan on Wednesday

By Sara Rosenberg

New York, July 13 – First Brands Group LLC is scheduled to hold a lender call at 11 a.m. ET on Wednesday to launch a fungible $710 million incremental first-lien term loan due Feb. 2, 2024, according to a market source.

Jefferies LLC is the lead arranger on the deal.

Price talk on the incremental term loan is Libor plus 750 basis points with a 1% Libor floor and an original issue discount of 94, the source said.

The incremental term loan has hard call protection of 102 in year one and 101 in year two.

Included in the term loan is a total net leverage covenant.

Proceeds will be used to fund acquisitions.

Pro forma for the transaction, the first-lien term loan size will total about $1.479 billion.

Along with the incremental term loan, the company is seeking an amendment to increase its ABL size, modify the total net leverage covenant and consolidated adjusted EBITDA definition, increase the leverage governor on permitted acquisitions, remove the cap on cash netting for the consolidated total net debt definition, increase the basket for sales leaseback transactions and assign Jefferies the role of administrative agent, the source added.

Lenders are being offered a 1% amendment/exchange fee.

First Brands, formerly known as Trico Group, is an automotive aftermarket platform offering a comprehensive solution for consumable maintenance and mission-critical repair parts.

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