S&S Holdings raises pricing on first- and second-lien term loans

By Sara Rosenberg

New York, March 8 – S&S Holdings LLC increased pricing on its $600 million seven-year first-lien term loan (B2/B-) to Libor plus 500 basis points from talk in the range of Libor plus 425 bps to 450 bps and on its $200 million eight-year second-lien term loan (Caa1/CCC) to Libor plus 875 bps from Libor plus 825 bps, according to a market source.

Also, the original issue discount talk on the first-lien term loan was revised to a range of 97 to 97.5 from 99, and the discount on the second-lien term loan widened to 96.5 from talk in the range of 98 to 98.5, the source said.

Furthermore the 101 soft call protection on the first-lien term loan was extended to one year from six months.

And, some changes were made to documentation.

The term loans still have a 0.5% Libor floor, and the second-lien term loan still has call protection of 102 in year one and 101 in year two.

The company’s $1.025 billion of credit facilities also include a $225 million five-year ABL revolver.

Barclays, Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, BMO Capital Markets, BNP Paribas Securities Corp., Citizens, Natixis and Truist are the bookrunners on the deal.

Final commitments are due at 5 p.m. ET on Tuesday, the source added.

Proceeds will be used to help fund the buyout of the company by Clayton, Dubilier & Rice.

Closing is expected this quarter.

S&S is a Bolingbrook, Ill.-based distributor of imprintable apparel and accessories.

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