Barrette in market with $125M incremental term loan; lender call today

Lead arranger Credit Suisse has scheduled a lender call for today at 2 p.m. ET to launch a $125 million incremental term loan B for Barrette Outdoor Living Inc., according to sources. Commitments are due at 5 p.m. ET on March 2.

The add-on is offered at 99.5-99.75 and will be fungible with the existing covenant-lite TLB due November 2027 that is priced at L+400 with a 0.75% Libor floor. There is a 25 basis points margin step-down at 3.65x net first-lien leverage. It will be covered by the existing 101 soft call protection that runs until May 2, 2021.

At talk, the yield to maturity is 4.88%-4.93%.

Proceeds will be used for general corporate purposes, including acquisitions.

Current corporate and facility ratings are B/B2, with a 3 recovery rating on the loan from S&P Global Ratings. LEB Holdings (USA) Inc. is the borrower.

Barrette placed the existing $405 million TLB in September 2020 to finance the acquisition of the company by TorQuest and CDPQ.

Barrette is a manufacturer and distributor of wood-alternative fencing, railing and other outdoor living products.