Reedy launches $401 million of term loans at Libor plus 450 bps

By Sara Rosenberg

New York, Aug. 5 – Reedy Industries launched on Thursday its $325 million seven-year covenant-lite first-lien term loan (B2/B-) and $76 million delayed-draw first-lien term loan (B2/B-) with price talk of Libor plus 450 basis points with a 0.75% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The first-lien term loan debt has 101 soft call protection for six months, the source said.

The company’s $575.5 million of credit facilities also include a $65 million revolver (B2/B-) and a $109.5 million pre-placed second-lien term loan, of which $16 million is a delayed-draw tranche.

Truist, Antares Capital, Ares and Blackstone are the leads on the deal.

Commitments are due on Aug. 19, the source added.

Proceeds will be used to help fund the buyout of the company by Partners Group from Audax Private Equity.

Closing is expected in the third quarter.

Reedy Industries is a Deerfield, Ill.-based provider of commercial heating, ventilation and air conditioning services.

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