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NN raises pricing on $350 million term loan to Libor plus 500 bps
By Sara Rosenberg
New York, Aug. 14 – NN Inc. lifted pricing on its $350 million seven-year covenant-light term loan (B2/B+) to Libor plus 500 basis points from Libor plus 425 bps, according to a market source.
Also, the original issue discount on the term loan was changed to 98˝ from 99, amortization was increased to 5% per annum from 1%, and the incremental facility was reduced to $50 million subject to a 4 times leverage test from $100 million, the source said.
The term loan still has a 1% Libor floor and 101 soft call protection for one year.
Allocations are expected on Friday, the source added.
The company’s $450 million senior secured credit facility also includes a $100 million five-year asset-based revolver.
Bank of America Merrill Lynch and Keybanc Capital Markets are the lead arrangers and bookrunners on the deal, with Bank of America left lead on the term loan and Keybanc left lead on the revolver.
Proceeds will be used to help fund the acquisition of Autocam Corp. for $244.5 million in cash, $25 million of stock and the assumption of $30.5 million of debt, to refinance NN’s outstanding debt and for working capital and general corporate purposes.
Closing is expected in the third quarter, subject to customary conditions and regulatory approval.
NN is a Johnson City, Tenn.-based manufacturer of high precision metal bearing components, industrial plastic and rubber products and precision metal components. Autocam is a Grand Rapids, Mich.-based manufacturer of highly complex, system critical components for fuel systems, engines and transmission, power steering and electric motors.
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