The Hillman Group Announces Pricing and Commitments for $1.185 Billion of Term Loans in Heavily Oversubscribed Transaction

CINCINNATI and HOUSTON, March 03, 2021 (GLOBE NEWSWIRE) -- The Hillman Companies, Inc. (the "Company" or "Hillman”), a leader in the hardware and home improvement industry, has successfully completed the syndication of $1,185 million new term loan commitments to refinance its capital structure. The financing will be used in connection with and contingent upon the Company's merger with Landcadia Holdings III Inc. (Nasdaq: LCY) (“Landcadia”), a special purpose acquisition company. The financing also includes a $250 million, five-year asset-based revolving credit facility.

Summary of new term loans:

• $835 - $985 million Term Loan (final principal amount subject to actual Landcadia shareholder redemptions in connection with the merger)
• $200 million Delayed-Draw Term Loan
• LIBOR plus 2.75% (subject to the 50-basis point floor) with 0.25% original issue discount
• Upon reduction of the leverage by 0.5x or more from the pro forma leverage ratio at closing, a rate reduction to LIBOR plus 2.50%
• Term Loan and Delayed-Draw Term Loan maturity to be 7 years after closing
  

The syndication of the new term loans was approximately four times oversubscribed and, as a result, achieved more favorable terms than the initial price talk of LIBOR plus 3.00-3.25% with 0.50% original issue discount.

Rocky Kraft, Chief Financial Officer, commented, “We are very pleased with the better than expected execution we realized on these credit facilities. This accomplishes an important milestone on our road to merging with Landcadia III and, together with continued strong momentum in our sales in the first quarter, becoming a successful public company.”

Jefferies and Barclays acted as Joint Bookrunners and Joint Lead Arrangers on the New Term Loan. Jefferies is the Administrative Agent.

On January 25, 2021, Hillman and Landcadia III announced that they entered into a definitive merger agreement that will result in Hillman becoming a publicly listed company. Upon the closing of the transaction, which is expected to occur in the second quarter of 2021, the combined company will be named Hillman Solutions Corp. and remain listed on Nasdaq under the new ticker symbol “HLMN.”

About Hillman

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency. For more information on Hillman, visit https://www.hillmangroup.com/us/en.