First Brands lifts term loans to $525 million, €225 million

By Sara Rosenberg

New York, March 7 – First Brands Group LLC upsized its fungible U.S. incremental first-lien term loan due March 30, 2027 to $525 million from $400 million and its fungible euro incremental first-lien term loan due March 30, 2027 to €225 million from €200 million, according to a market source.

Also, the original issue discount on the U.S. term loan was changed to 99.25 from 99 and the discount on the euro term loan was set at 99, the tight end of the 98.5 to 99 talk, the source said.

Pricing on the incremental U.S. term loan is SOFR+CSA plus 500 basis points with a 1% floor, in line with pricing on the company’s existing term loan. CSA is 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The incremental euro term loan is priced at Euribor plus 500 bps with a 1% floor, in line with existing euro term loan pricing.

Jefferies LLC is the sole lead arranger on the deal.

Commitments continue to be due at 10 a.m. ET on Friday, the source added.

Proceeds will be used to refinance the company’s existing 2024-I incremental first-lien term loan, to fund the purchase consideration for Factory Motor Parts Group, and to add cash to the balance sheet, the amount of which was increased with the upsizings, for general corporate purposes, including future mergers and acquisitions.

First Brands is a Rochester, Mich.-based automotive aftermarket platform offering comprehensive solutions for consumable maintenance and mission-critical repair parts.

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