Truck Hero allocates $1.55B term loan for buyout; terms

Investors have received allocations of Truck Hero Inc.'s $1.55 billion, seven-year covenant-lite term loan B that priced tight to talk at L+375, with a 0.75% Libor floor and an offer price of par via a Jefferies-led arranger group, according to sources. The term loan has two 25-basis-point leveraged-based step-downs and a 25-basis-point IPO-based stepdown. Proceeds from the term loan will be used to fund the acquisition of the company by an L Catterton-led consortium, which includes a wholly owned subsidiary of the Abu Dhabi Investment Authority, Mubadala Investment Co. and StepStone Corp. Existing sponsor CCMP Capital, among other shareholders, and the company's founding CEO, Bill Reminder, will remain investors. Financing for the buyout also includes a $600 million issue of 6.25% senior unsecured notes due February 2029 and a $200 million, five-year asset-based loan revolver. Truck Hero manufactures and markets branded functional accessories for trucks and Jeeps. Terms: