Bank of America and UBS are poised to launch syndication tomorrow afternoon of a $165 million facility to back private equity firm Bain Capital's $440 million buyout of Keystone Automotive Operations. The credit includes a six-year, $115 million term loan priced at LIBOR plus 31/2% and a five-year, $50 million revolver priced at LIBOR plus 31/4%, according to a banker familiar with the deal. There is also a $175 million senior notes component that will also support the transaction. The banker said senior leverage for the Exeter, Pa.-based company is around two times, while total leverage is about 5.5 times. UBS officials declined to comment, while a B of A banker did not return calls.
Equity partners Littlejohn & Co., Advent International, GE Capital and other equity shareholders are selling the marketer and distributor of automotive parts and accessories to Bain. UBS advised Keystone and its shareholders on the transaction, while law firm Pepper Hamilton provided legal advice. Kirkland & Ellis advised Bain. A spokesman for Bain did not return calls.