Lakeshore shifts to all funded term loan, firms at Libor plus 425 bps

By Sara Rosenberg

New York, Aug. 13 – Lakeshore Recycling Systems (LRS Holdings LLC) upsized its funded term loan B due 2028 to $323 million from a revised amount of $315 million and an initial size of $300 million, and eliminated plans for an $8 million delayed-draw term loan that was downsized from $23 million previously, according to a market source.

Additionally, pricing on the term loan firmed at Libor plus 425 basis points, the low end of the Libor plus 425 bps to 450 bps talk, and original issue discount talk was changed to a range of 99 to 99.5 from just 99, and then firmed at 99.5, the source said.

The term loan has a 25 bps step-down at 3.5x first-lien net leverage, a 0.75% Libor floor and 101 soft call protection for six months.

The company’s $398 million of credit facilities (B3/B) also include a $75 million revolver.

JPMorgan Chase Bank is the lead on the deal.

Recommitments were scheduled to be due at 11 a.m. ET on Friday, the source added.

Proceeds will be used to help fund the buyout of the company by Macquarie Infrastructure and Real Assets.

Lakeshore is a Morton Grove, Ill.-based recycling and waste diversion services provider.

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