Madison Safety sets first- and second-lien term loan price talk

By Sara Rosenberg

New York, Nov. 30 – Madison Safety & Flow released price talk on its $925 million seven-year first-lien term loan (B1) and $275 million eight-year second-lien term loan (Caa1) with its lender call on Tuesday, according to a market source.

Talk on the first-lien term loan is SOFR+CSA plus 375 basis points to 400 bps with a 0.5% floor and an original issue discount of 99, and talk on the second-lien term loan is SOFR+CSA plus 675 bps to 700 bps with a 0.5% floor and a discount of 98.5, the source said.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The first-lien term loan has 101 soft call protection for six months, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Goldman Sachs Bank USA, CIBC, Capital One, Comerica, Fifth Third, Golub, HSBC Securities (USA) Inc., MUFG, Siemens and Stifel are the bookrunners on the deal.

Commitments are due at noon ET on Dec. 14, the source added.

Proceeds will be used to fund the acquisition of Safe Fleet, refinance Madison Safety’s existing debt, and pay transaction related fees, expenses and original issue discount.

Madison Industries is the sponsor.

Madison Safety is a manufacturer of safety products and systems utilized by fire departments, first responders, rescue teams, municipalities, essential service providers and diversified industrial markets. Safe Fleet is a manufacturer of safety and productivity products for fleet vehicles and first responders.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.