Pro Mach sets offer price on $70 million add-on term loan B at par

By Sara Rosenberg

New York, Feb. 25 - Pro Mach Inc. firmed the offer price on its $70 million add-on senior secured term loan B due July 16, 2017 at par, the tight end of the 99½ to par talk, according to a market source.

Pricing on the add-on is Libor plus 375 basis points with a 1.25% Libor floor, in line with existing term loan B pricing, and there is 101 soft call protection that expires on Oct. 15, 2013.

Proceeds from the add-on will be used to fund a one-time distribution to shareholders.

Recommitments were due by 1 p.m. ET on Monday, the source added.

In conjunction with the add-on, the company is asking to amend the restricted payments basket under its existing credit facility to allow for the dividend payment.

The amendment will also adjust the net total leverage covenant levels and refresh the incremental basket at existing levels pro forma for the transaction, the source added.

Lenders are being offered a 15 bps amendment fee.

The amendment is expected to be effective on Wednesday.

Net senior secured and net total leverage is 4.5 times.

Barclays is the bookrunner on the deal.

Pro Mach is a Loveland, Ohio-based provider of packaging machinery services and related aftermarket products to clients in the food, beverage, household goods and pharmaceutical industries.

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