Reedy Industries finalizes $401 million of term loans at 99.5 OID

By Sara Rosenberg

New York, Aug. 24 – Reedy Industries firmed the original issue discount on its $325 million seven-year covenant-lite first-lien term loan (B2/B-) and $76 million delayed-draw first-lien term loan (B2/B-) at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

Pricing on the first-lien term loan debt remained at Libor plus 450 basis points with a 0.75% Libor floor.

The first-lien term loan debt still has 101 soft call protection for six months.

Delayed-draw ticking fees are half the spread from days 46 to 90 and full spread thereafter.

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.

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

Closing is targeted for Aug. 31.

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

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