Chamberlain Group $2.015B LBO term loan allocates, gains on break; terms

Investors have received allocations of The Chamberlain Group Inc.'s $2.015 billion seven-year covenant-lite term loan B that priced at L+350 with a 0.5% Libor floor and an issue price of 99.75 through a Wells Fargo-led arranger group, according to sources. Pricing was finalized tight to talk and the loan was upsized by $90 million. The loan broke for trading at 100/100.375. The deal backs Blackstone's acquisition of Chamberlain from The Duchossois Group Inc., which will retain an ownership stake in the business. The purchase price is approximately $5.2 billion. The upsizing of the term loan will be used to reduce the equity contribution. Additional financing includes a $600 million second-lien term loan due 2029 and a $250 million revolver due 2026, undrawn at close, with a springing first-lien net leverage covenant. Pro forma first-lien leverage is 5.8x and total leverage is 7.5x, according to sources. Chamberlain, based in Oak Brook, Ill., is a global provider of smart access solutions for residential and commercial properties, with brands such as LiftMaster, Chamberlain, Merlin and Grifco.

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