Dec. 16 (Bloomberg) -- Capital Safety Group’s $425 million term loan backing the U.K.-based safety-harness maker’s buyout by KKR & Co. rose in initial trading, according to a person familiar with the transaction.
The debt began trading at 99.25 cents on the dollar, said the person, who declined to be identified because the trades are private. The financing was sold at 98 cents, the person said
The seven-year loan pays a rate of 5 percentage points more than the London interbank offered rate with a 1.25 percent floor on the benchmark, the person said. Libor is the rate banks charge to lend to each other.
UBS AG, Morgan Stanley, Mizuho Financial Group Inc. and KKR Capital Markets arranged the financing, the person said.
New York-based KKR agreed to buy Capital Safety from Arle Capital Partners last month, according to Nov. 28 news release.
Kristi Huller, a KKR spokeswoman, couldn’t immediately comment.
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