Watlow Electric launches $175 million term loan at 99.03-99.25 OID

By Sara Rosenberg

New York, Sept. 21 – Watlow Electric Manufacturing Co. launched on Thursday its fungible $175 million add-on covenant-lite term loan B due March 2028 with original issue discount talk of 99.03 to 99.25, according to a market source.

Pricing on the add-on term loan B is SOFR+CSA plus 375 basis points with a 0.5% floor, in line with pricing on the company’s existing $503 million term loan B.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The add-on term loan and existing term loan are getting 101 soft call protection for six months, the source said.

BMO Capital Markets is the sole lead arranger on the deal.

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

Proceeds will be used to repay an existing non-fungible incremental term loan due March 2028 that is priced at SOFR+ARRC CSA plus 500 bps with a 0.5% floor.

Tinicum is the sponsor.

Watlow is a St. Louis-based designer and manufacturer of complete thermal systems.

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