Circor $530 million term loan OID revised to 99 after CFO resignation

By Sara Rosenberg

New York, Dec. 17 – Circor International Inc. now plans to issue its $530 million seven-year term loan at a wider-than-previously expected original issue discount on the back of news of its chief financial officer’s resignation, according to a market source.

The term loan is now being issued at an original issue discount of 99, revised from 99.5 at allocation but in line with talk at launch of 99, the source said.

Pricing on the term loan remained at Libor plus 450 basis points with a 0.5% Libor floor. The spread firmed at the low end of the Libor plus 450 bps to 475 bps talk during syndication.

The term loan has 101 soft call protection for six months.

Along with the term loan, the company’s $630 million of credit facilities (B2/B-) include a $100 million five-year revolver.

Truist Securities, Citizens Bank and KeyBanc Capital Markets are leading the deal that will be used to refinance existing debt and pay transaction-related fees.

Allocations for the term loan went out on Wednesday, at which time it freed to trade at 99¾ bid, par 1/8 offered. On Friday, the term loan was quoted at 99½ bid, par offered, another source added.

Shortly after allocations went out on Wednesday, the company announced that Abhishek Khandelwal, senior vice president and chief financial officer, plans to step down effective Dec. 31, in order to pursue an external opportunity.

AJ Sharma, currently Circor’s senior vice president, business development, will serve as the interim chief financial officer. The company has initiated a search process to identify a permanent chief financial officer.

Circor is a Burlington, Mass.-based provider of mission critical flow control products and services for the industrial and aerospace & defense markets.

© 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.