Royal Oak firms $400 million term loan B at Libor plus 400 bps

By Sara Rosenberg

New York, Dec. 10 – Royal Oak Enterprises (Ozark Holdings LLC) set pricing on its $400 million seven-year senior secured first-lien term loan B at Libor plus 400 basis points, the low end of the Libor plus 400 bps to 425 bps talk, according to a market source.

Also, the Libor floor on the term loan was reduced to 0.75% from 1% and the original issue discount was tightened to 99.5 from 99, the source said.

The term loan still has 101 soft call protection for six months.

Security is a first-priority lien on substantially all assets and pledge of stock.

Barclays and Citigroup Global Markets Inc. are the bookrunners on the deal. Barclays is the administrative agent.

Final commitments were scheduled to be due at 11 a.m. ET on Thursday, the source added.

Proceeds will be used to repay an existing term loan and repurchase a minority interest to increase Mariposa Capital’s ownership in the company.

Royal Oak is a Roswell, Ga.-based manufacturer and distributor of fire building products and other consumable products.

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