Sept. 26 (Bloomberg) -- Compass Group Diversified Holdings LLC, an owner of manufacturing and staffing companies, is seeking $500 million of loans to refinance debt, according to a person with knowledge of the transaction.
The financing will include a $275 million first-out revolving line of credit maturing in five years and a $225 million last-out term loan due in six years, said the person, who declined to be identified because the terms are private.In a liquidation lenders in first-out debt are repaid before last-out creditors.
Toronto-Dominion Bank is arranging the deal for the Westport, Connecticut-based company and will host a lender meeting Sept. 28 at 10 a.m. in New York.
Alan Offenberg, chief executive officer of Compass, didn’t respond to an e-mail seeking comment.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
--Editors: Faris Khan, Chapin Wright
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