S&S Holdings widens price talk on $600M 1st-lien, $200M 2nd-lien term loans

A Barclays-led arranger group has flexed price talk on the $600 million first-lien and $200 million second-lien term loan financing backing the buyout of S&S Holdings by CD&R, according to sources. Final commitments are due by 5 p.m. ET on March 9.

Price talk for the seven-year first-lien term loan is now L+500 with a 0.5% Libor floor and an issue price in the range of 97-97.5. That is revised from guidance at launch of L+425-450 at 99. Also note that the 101 soft call protection was extended to 12 months, from six months.

The eight-year second-lien term loan is now talked at L+875 with a 0.5% floor and an issue price of 96.5. It had launched at L+825 at 98-98.5. There are hard calls at 102 and 101 in years one and two, respectively.

At the wider pricing, the yield to maturity on the first-lien tranche moves to 6.09%-6.19%, from 5.02%-5.28% under the original guidance. On the second-lien the yield is now 10.26%, versus 9.33%-9.42% previously.

Additional bookrunners on the deal are Deutsche Bank, Credit Suisse, BMO Capital Markets, BNP Paribas, Citizens, Natixis and Truist Securities.

First-lien facility ratings are B-/B2, with a 3 recovery rating from S&P Global Ratings. Second-lien ratings are CCC/Caa1, with a recovery rating of 6. Corporate ratings are B-/B3.

Financing will include a $225 million asset-based revolver, undrawn at close, that will be governed by a springing fixed-charge coverage covenant, according to Ratings.

CD&R announced Jan. 20 that it was acquiring S&S Activewear LLC alongside current owners and management. Closing of the acquisition is expected in the first quarter.

S&S is a distributor of blank sportswear, corporate apparel and accessories, including t-shirts, fleece and sweatshirts, headwear, athletics and outerwear.