Investors have received allocations of The Hillman Group Inc.'s $1.185 billion term loan financing that will be used in connection with the company's merger with Landcadia Holdings III Inc., a special purpose acquisition company, according to sources. The term loan priced tight of talk at L+275, with a 0.50% Libor floor and an original issue discount of 99.75 via lead arrangers Jefferies and Barclays. There is also one 25-basis-point margin step-down at 0.5x inside closing leverage. The financing is split between an $835 million term loan B-1, a $150 million term loan B-2 and a $200 million delayed-draw term loan. All three term loan tranches allocated as a strip. The OID on the delayed-draw tranche will be paid at funding. The delayed-draw tranche is available for 24 months. There is a long-close ticking fee on all three tranches that is 50% of the margin from days 46-90, stepping to 100% of the margin thereafter. The ticking fee on the delayed-draw tranche is 0% through the first 60 days, 50% of the margin from days 61-120, stepping to 100% of the margin thereafter. Financing also includes a $250 million, five-year asset-based loan revolver.

Hillman provides hardware-related products and merchandising services to retail markets.

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