BofA Ups Provo’s Coupon, Widens OID
March 3, 2010
Bank of America Merrill Lynch has upped the coupon and widened the OID on a $235 million term loan for Provo Craft & Novelty. The coupon was increased to Libor plus 550 bps and the OID was widened to 97.5 from 98. The 2% Libor floor remains unchanged. Commitments are due March 9.
Provo plans to use the proceeds from the loan to help back its acquisition by BAML Capital Partners, the private equity and mezzanine investment arm of Bank of America. The financing also includes a $50 million revolver.
Spanish Fork, Utah-based Provo sells arts and crafts products and designs. Its total leverage ratio is around 3.6x, while its senior leverage ratio is around 2.3x.
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