First Brands lifts incremental term loan amount to $810 million

By Sara Rosenberg

New York, July 22 – First Brands Group LLC upsized its fungible incremental first-lien term loan due Feb. 2, 2024 to $810 million from $710 million, according to a market source.

Talk on the incremental term loan remained at Libor plus 750 basis points with a 1% Libor floor, an original issue discount of 94 and hard call protection of 102 in year one and 101 in year two.

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

Jefferies LLC is the lead arranger on the deal.

Proceeds will be used to fund acquisitions, and the funds from the upsizing will be used to reduce an ABL draw, the source said.

Pro forma for the transaction, the first-lien term loan size will total about $1.579 billion.

Along with the incremental term loan, the company is seeking an amendment to increase its ABL size, revise some documentation and assign Jefferies the role of administrative agent.

Two lender-friendly changes were made to the amendment, the source added.

Commitments and consents continued to be due at 3 p.m. ET on Wednesday.

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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