Merrill Lynch is in the market with a new $275 million senior secured credit facility for The Hillman Group. The deal consists of a four-year, $40 million revolver and a five-year, $235 million "C" term loan. The new facility is expected to repay a previous $214 million term loan and $19 million outstanding on a revolver. Moody's Investors Service assigned a rating of B2 and a stable outlook to the new facility.
Hillman's last credit facility was led by JPMorgan in 2004, when it was acquired by Code Hennessy and Simmons. That deal consisted of a $40 million revolver priced at LIBOR plus 3% and a $217.5 million term loan "B" priced at LIBOR plus 3 1/4%.
Based in Cincinnati, Ohio, Hillman distributes hardware, letters, numbers and signs, keys and accessories, and engraving technologies. It sells the inventory to hardware stores, home centers, pet suppliers, mass merchants, and other retail outlets located in North and South America. In January it acquired The Steelworks Corp., a Denver, Colo.-based manufacturer and distributor of metal shapes, threaded rod and metal sheet to the retail hardware and home improvement industries. Calls toJim Waters, cfo of Hillman, were not returned. A Merrill Lynch banker declined to comment.