Metrologic Instrument's $125 million term loan "B" broke at 100 3/8-7/8, boosted by strong market conditions in the secondary, which saw deals trade on average a quarter of a point stronger compared to the prior week. Morgan Stanley leads the deal, which backs private equity fund Francisco Partners' acquisition of the company.
The credit line also consists of a $35 million revolver and a $75 million second lien. Pricing was flexed down 25 basis points on the first lien to LIBOR plus 2 3/4% and 50 basis points to LIBOR plus 6 1/2% on the second lien (CIN, 12/15). An investor said pricing is thin on the deal, but strong technicals helped boost the loan's performance in the secondary. Also, a slow pipeline of deals in the primary pushed up pricing in the secondary. "There is more demand then supply too much cash chasing too few deals," he said.
Moody's Investors Service assigned a B1 to the first lien and a Caa1 to the second lien. The ratings are constrained by high debt levels the company is assuming to fund the acquisition, said the ratings agency in a report. A call to Michael Coluzzi, cfo, was not returned.