Pro Mach launches $160 million add-on term loan at 99-99.5 OID

By Sara Rosenberg

New York, Oct. 11 – Pro Mach Inc. launched on Tuesday its $160 million senior secured add-on first-lien term loan B (B2/B-) due October 2021 with price talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The add-on term loan has 101 soft call protection for six months, which the existing term loan will get as well, and amortization of 1% per annum, the source said.

Of the total add-on amount, $50 million is a delayed-draw tranche with an undrawn fee of 187.5 bps per annum.

The delayed-draw availability is for 12 months, subject to 4.5 times pro forma leverage, the source continued.

Goldman Sachs Bank USA and Antares Capital are the joint bookrunners on the deal.

Commitments are due on Oct. 18, the source added.

Proceeds will be used for opportunistic acquisitions and to refinance existing second-lien debt.

Pro Mach is a Covington, Ky.-based provider of packaging machinery solutions and related aftermarket products serving the food, beverage, pharmaceutical and consumer packaged goods companies.

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