Foley Products launches $370M term loan; commitments due Feb. 10

Foley Products Company has launched a $370 million first-lien term loan through lead arrangers Credit Suisse and Truist Securities, according to sources. A lender call is scheduled for today at 2 p.m. ET, and commitments are due by 5 p.m. ET on Feb. 10.

Price talk for the seven-year covenant-lite term loan is a spread of 450 basis points to 475 bps over the secured overnight financing rate, plus a credit spread adjustment, with a 0.5% floor and an original issue discount of 99. The CSA is 10 bps for the one-month rate, 15 bps for the three-month rate and 25 bps for the six-month rate. Lenders are offered six months of 101 soft call protection.

At talk, the yield to maturity is 5.28%-5.54%.

Corporate and facility ratings are B/B2, with stable outlooks, and there is a 3 recovery rating on the loan from S&P Global Ratings. The borrowers are Foley Products Company LLC and FPC Holdco LLC.

Proceeds from the deal will be used to recapitalize the company in conjunction with a minority investment from Oaktree Capital that will give the firm a 37% stake in the business. Additional financing includes a $35 million revolver due 2027 with a springing consolidated first-lien secured leverage covenant, Moody's notes.

Foley is a producer of precast concrete products.