Oregon Tool LME Features New $156M Term Loan From Existing Lenders; Maturities Extended to Q4’29

Oregon Tool entered into a liability management exercise today that was supported by approximately 81% of existing unsecured noteholders and 83% of existing term loan holders as well as 100% of the company’s revolving credit facility lenders, according to a document seen by Octus, formerly Reorg.

On Feb. 18, Oregon Tool’s newly formed subsidiary, Oregon Tool Lux LP, a Luxembourg entity, issued approximately $156 million of new first lien debt, while RCF lenders exchanged, at par, into a new first lien RCF.

Yesterday, Feb. 19, an ad hoc group of term loan lenders and an ad hoc group of holders of the company’s term loans and notes extended the maturity of their term loans to October 2029.

Today, Thursday, Feb. 20, the term loan ad hoc group and cross-holder ad hoc group lenders, at the company’s election, refinanced or committed to refinance at a discount all existing term loans maturing in October 2029 and committed to exchange all notes held by the term loan ad hoc group and cross-holder ad hoc group members into a mix of new second lien term loans and new third lien notes.

The new RCF, first lien term loan, second lien term loan and third lien notes have maturities of Oct. 15, 2029. Additionally, Oregon Tool’s existing ABL lenders extended the maturity of the company’s facility to Oct. 15, 2029.

Participating lenders consented to the adoption of certain amendments to the existing term loan facility, which are now effective, that eliminate restrictive covenants in the existing debt.

As a result of the transactions, Oregon Tool increased its liquidity by approximately $150 million and reduced its pre-transaction debt obligations by over $75 million.

An estimate of the company’s pre-transaction capital structure is shown below:
 

Oregon Tool was advised by Milbank and PJT Partners, while Davis Polk and Perella Weinberg Partners represented the term loan ad hoc group. Paul Weiss and Lazard advised the cross-holder ad hoc group. Cahill served as legal counsel to RCF and ABL lenders.

The average price for Oregon Tool’s L+400 bps first lien term loan B is 63.64 as of today, down from 74.36 three months ago, according to Solve. CLO lenders to Oregon Tool can be found HERE in Octus’ CLO Database.

Oregon Tool and company sponsor Platinum Equity did not immediately respond to requests for comment.