8 Feb, 2022

AHF Products completes $215M term loan for buyout at talk; terms

AHF Products has completed its $215 million first-lien term loan that will be used to fund the acquisition of the company by Paceline Equity Partners, according to sources. The six-year term loan priced in line with talk at a spread of 625 basis points over the secured overnight financing rate plus a credit spread adjustment, with a 0.75% floor and an original issue discount of 98 via a UBS-led arranger group. The loan will amortize at 5% per annum and it will be governed by a total net leverage covenant. Additional financing includes a $50 million, five-year asset-based loan facility.

AHF Products is a producer of hardwood flooring in North America, consisting of a comprehensive portfolio of brands and products across solid wood flooring, engineered wood flooring and fast-growing adjacent flooring categories.

Terms:

Borrower AHF Products LLC
Issue $215 million first-lien term loan
UoP LBO
Spread Sofr+CSA+625
Sofr+CSA floor 0.75%
Price 98
Tenor 6-year
YTM 7.71%
Four-year yield 7.81%
Call protection 101 hard call for 12 months
Corporate ratings B/B2
Facility ratings B/B2
Recovery ratings 3
Financial covenants Total net leverage covenant
Arrangers UBS/Key/Stifel
Admin agent UBS
Px Talk Sofr+CSA+625/0.75%/98
Sponsor Paceline Equity Partners
Notes CSA: 11.4/26.2/42.8 bps (1-month, 3-month, 6-month rates); 5% amortization; Maturity revised from 7-year.