The Royal Bank of Scotland and UBS are pitching an amendment add-on to an existing credit facility for PlayPower, a manufacturer of commercial play and recreational equipment, to back its acquisition of Oval Group, a U.K. company in the same field. The deal comprises a £5 million add-on to the revolver and a £44 million add-on to the term loan. Pricing will remain at LIBOR plus 3%. The company currently has a $25 million revolver and $144 million term loan outstanding. The deal is being sold to existing lenders, a banker said. Investcorp owns PlayPower.
Kevin Charlton, a principal at Investcorp, explained that Oval is tied for the biggest municipal playground company in the U.K. and that Investcorp thinks the U.K. market is very attractive. "The purpose of the deal is to acquire a market leading manufacturer with strengths similar to what PlayPower's strengths are in the U.S.," he said. The deal received private ratings of B1 from Moody's Investors Service. A representative from PlayPower declined comment.