Parts Town nets $1.52B loan backing Leonard Green investment, refinancing

Parts Town received a $1.52 billion unitranche debt facility, market sources said.

Golub Capital was the administrative agent, lead arranger and sole lead bookrunner. KKR and BMO were joint lead arrangers.

Proceeds will refinance existing debt, support a minority equity investment from Leonard Green Partners LP and fund a tuck-in acquisition. PT Intermediate Holdings III LLC is the borrowing entity.

A week ago, Parts Town announced Leonard Green had made a “significant” investment in the company. Berkshire Partners will remain the company’s majority equity holder.

In November 2019, Parts Town placed a $788 million, six-year (L+550, 1% floor) unitranche loan via lead arranger and administrative agent Golub Capital. Proceeds from that financing funded an acquisition and refinanced debt.

Berkshire Partners acquired a majority stake in Parts Town in 2016 backed by a unitranche loan, also led by Golub Capital. The company’s capital structure was refinanced in 2017 via a Jefferies-led arranger group that included Golub Capital and Citizen.

Parts Town is a technology-enabled global distributor of genuine original equipment manufacturer parts for the foodservice industry. The company generates over $1 billion in revenue annually and employs over 2,500, according to the company.

Article amended at 10:15 a.m. ET on Nov. 16, 2021, to add joint lead arrangers.