Syndication kicked off last Thursday for Harbor Freight Tools' $490 million recapitalization. The deal comprises a five-year, $50 million revolver at LIBOR plus 2 3/4% and seven-year, $440 million "B" loan at LIBOR plus 3%. Harbor Freight Tools and Central Purchasing are co-borrowers on the credit. Harbor Freight Tools is the trade name for the tool and equipment catalog retailer. Credit Suisse First Boston and UBS are leading the deal.
The company has an existing bank deal of around $120 million. The old deal is being taken out and the balance is a dividend, a banker said. An individual who built the business owns the company, he added, but declined to name the owner. Bob Glickman, Central Purchasing's cfo, did not return calls. CSFB and UBS bankers declined comment.