Protective Industrial Products tightens talk on $435M term loan for buyout

An Antares Capital-led arranger group has tightened price talk on the $435 million first-lien term loan that is part of the financing backing the acquisition of Protective Industrial Products Inc. (PIP) by Odyssey Investment Partners, according to sources. Commitments are now due by 5 p.m. ET today, versus 5 p.m. ET on Jan. 21 previously, with allocations to follow on Jan. 20.

Price talk on the seven-year term loan is now L+400, with a 0.75% Libor floor and an original issue discount (OID) of 99.5, versus L+425, and an OID of 99 at launch. Yield to maturity is approximately 4.93% at revised terms, from 5.28% at launch. Lenders are offered six months of 101 soft call protection.

Additional financing includes a $75 million, five-year revolver and a $160 million second-lien term loan that is being privately placed. Pricing on the second-lien is L+825, with a 1% floor and there are hard calls at 102 and 101.

Citizens Bank and Bank of Ireland are joint lead arrangers on the deal.

Odyssey announced in December 2020 that it was acquiring PIP from Audax Private Equity, which first invested in the business in 2018.

Protective Industrial Products, based in Latham, N.Y., is a provider of essential, consumable and high-performance industrial hand-protection products in North America.