Pricing is said to be LIBOR plus 7% for the $13 million second-lien piece on the credit backing Olympus Partners' acquisition of Homax Products from Harbour Group. The Royal Bank of Scotland is leading a $137 million facility, which comprises a $15 million revolver; $83 million first-lien term loan and $26 million mezzanine piece. Pricing on the revolver and first lien are LIBOR plus 33/4% and LIBOR plus 41/4%, respectively. Leverage through the first-lien tranche will be 3.2 times, while total leverage is expected to be 4.6 times, a banker said. Syndication launched two weeks ago and commitments are due tomorrow. Homax is a Bellingham, Wash.-based provider of home improvement solutions. Calls to Olympus Partners, Harbour Group and Homax officials were not returned.
The bank is also launching today a refinancing for MW Manufacturers, a portfolio company of Investcorp. When the private-equity firm bought MW from Fenway Partners for $188 million last year, RBS supplied a $116 million deal, split into an $86 million senior piece and $30 million of mezzanine. Total senior debt was 2.25 times with pricing of LIBOR plus 41/2%, stated a banker. Now the mezzanine piece, held by RBS and another institution, is being taken out and replaced with an all-senior deal, he said. This will consist of a five-year, $20 million revolver, and a six-year, $90 million term loan. Both will be priced at LIBOR plus 33/4% with total leverage of 2.4 times.