Bear Stearns and BNP Paribas reworked the deal for Quality Home Brands last week, shifting money between tranches and cutting pricing. The banks moved $20 million from the second lien into the first lien and decreased pricing on the second lien to LIBOR plus 6 1/4%. Pricing on the first lien remained at LIBOR plus 2 1/2%, but a stepdown was added to take pricing to LIBOR plus 2 1/4% when leverage is below three-and-a-half times. The changes were made on the back of the deal's oversubscription.
The financing, which backs the company's acquisition of Encompass Lighting, now consists of a $30 million revolver, a $290 million first lien and a $100 million second lien. The facility originally consisted of a $30 million revolver, a $270 million first lien and a $120 million second lien. Price talk was LIBOR plus 2 1/2% on the first lien and LIBOR plus 6 1/2-6 3/4% on the second lien (CIN, 5/22). A call to Ron Hersh, president of administration at Murray Feiss Imports, was not returned. Quality was formed following the merger of Murray Feiss andSea Gull Lighting in October. Murray Feiss, Sea Gull and Quad-C Management, Murray Feiss' sponsor, all have ownership interests.