First Brands launches $300 million term loan at SOFR plus 500 bps

By Sara Rosenberg

New York, April 20 – First Brands Group LLC launched without a call on Wednesday a fungible $300 million incremental senior secured first-lien term loan due March 30, 2027 with price talk of SOFR+CSA plus 500 basis points with a 1% floor and an original issue discount of 99.25, according to a market source.

CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Jefferies LLC, BofA Securities Inc., Wells Fargo Securities LLC, Regions Bank, Capital One and Fifth Third are the arrangers on the deal.

Commitments are due at noon ET on April 26, the source added.

Proceeds will be used to add cash to the balance sheet for general corporate purposes.

In connection with this transaction, the existing loans will convert to SOFR from Libor with CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The conversion will be done as a negative consent where lenders have five business days from the posting of the change.

Pro forma for the transaction, the first-lien term loan will total $2.017 billion.

First Brands is an automotive aftermarket platform offering comprehensive solutions for consumable maintenance and mission-critical repair parts.

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