Foley finalizes $370 million term loan at SOFR plus 475 bps

By Sara Rosenberg

New York, Feb. 10 – Foley Products Co. LLC firmed pricing on its $370 million seven-year covenant-lite first-lien term loan (B2/B) at SOFR+CSA plus 475 basis points, the high end of the SOFR+CSA plus 450 bps to 475 bps talk, according to a market source.

In addition, MFN was changed to 50 bps for life from 50 bps for 12 months and some carve-outs were removed, and incremental was revised to $54.375 million and 75% of EBITDA from $72.5 million and 100% of EBITDA, the source said.

The term loan still has a 0.5% floor, an original issue discount of 99, CSA of 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate, and 101 soft call protection for six months.

Credit Suisse Securities (USA) LLC and Truist are the lead arrangers on the deal.

Commitments continued to be due at 5 p.m. ET on Thursday, the source added.

Proceeds will be used to recapitalize Foley in conjunction with a minority investment from Oaktree Capital for a 37% stake in the company.

Foley is a Columbus, Ga.-based producer of precast concrete products.

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