Harbor Freight Sets Rate on Term Loan; Alinta Plans Refinancing

Harbor Freight Tools USA Inc. set the rate it will pay on a $1 billion covenant-light term loan to refinance debt and pay a dividend. Alinta Energy is seeking a $1.7 billion financing as prices of bank debt rise to the highest in more than a month.

Harbor Freight, a tool and equipment retailer, is proposing to pay interest at 4 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, according to a person familiar with the transaction, who asked not to be identified because the information is private.

Alinta Energy Finance PTY and Alinta Energy U.S. Finance LLC are seeking a $1.7 billion loan as part of a refinancing, said another person with knowledge of this deal. The debt may pay interest at 4.25 percentage points to 4.5 percentage points more than Libor with a 1 percent floor on the lending benchmark. The transaction includes a $70 million delayed-draw portion and an A$240 million ($221.5 million) credit line.

Guggenheim Partners LLC cut the rate it will pay on a $700 million term loan to 3.25 percentage points more than Libor from 3.5 percentage points initially proposed, according to a person with knowledge of the financing. Guggenheim will use proceeds to refinance debt and fund a distribution.

Prices of leveraged loans climbed 0.07 cent to 98.18 cents on the dollar, the most since June 3, according to the Standard & Poor’s LSTA Leveraged Loan 100 Index.

Credit Suisse Group AG arranged a 310.5 million-euro ($407.22 million) collateralized loan obligation for Ares Management Ltd, according to two people with knowledge of the transaction. The deal brings European CLO volume to 3.4 billion euros this year, according to data compiled by Bloomberg.