Trivest, Jumps From 'A' To 'B'

  • 20 May 2001
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Trivest, Inc. skipped the "A" tranche on its recently closed $225 senior credit facility to avoid the weak pro rata market. The credit closed earlier this market and backs the acquisition of Brown Jordan International. Bill Kaczynski, managing director at Trivest, says the company opted out of a term loan "A" on the advice of its lead bank, CIBC World Markets. "They advised us to do this to make the credit facility more attractive to investors. It would have the best structure and good execution," he said. "A term loan 'A' typically amortizes after five years, and a "B" is due after six years. It's more patient money at a higher yield." The facility breaks down into a $165 million term loan "B" and a $60 million revolver. It also pays off a $155 million senior credit facility. Trivest is based in Miami and made the acquisition through its affiliate WinsLoew Furniture.

FleetBoston Financial led the former deal and bid for the new facility. Kaczynski declined to comment on the change in leads other than to say that CIBC showed it could get the deal done. "They came up with the best structure. We got good execution from them in a tough market," he said.

Pricing is 3 1/2 % over LIBOR on the revolver and 4% over LIBOR on the term loan. "There was less risk in this deal, but it cost more than the old deal, which was simply a function of the market," he said, explaining the down side of going with all "B." Kaczynski says there's a perception that the furniture business struggles in a weak economy. "There's no evidence that it's the case. People are more cautious, but it's not reflected in this industry," he said. The company makes indoor and outdoor chairs, umbrellas, tables, sofas, and loveseats. Brown Jordan International is the parent company of Brown Jordan Company and Casual Living Worldwide. According to Trivest, the combination of WinsLoew and Brown Jordan creates a strong position in the casual furniture industry with approximately 22% of the market.

  • 20 May 2001

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