Diversified Machine talks $175 million term loan at Libor plus 775 bps

By Sara Rosenberg

New York, Nov. 3 - Diversified Machine Inc. launched its $175 million term loan on Thursday with price talk of Libor plus 775 basis points with a 1.5% Libor floor, according to a market source.

The original issue discount is still to be determined, the source said, adding that ratings are not out yet.

The company's $235 million credit facility also includes a $60 million asset-based revolver.

BMO Capital Markets Corp. and Mizuho Securities USA Inc. are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by Platinum Equity from the Carlyle Group.

Diversified Machine is a Howell, Mich.-based precision machining company specializing in automotive powertrain components.

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