Colfax trims term B to $400 million, adds euro-equivalent term A-4

By Sara Rosenberg

New York, Feb. 19 - Colfax Corp. downsized its term loan B due January 2019 to $400 million from $541 million and added a $141 million euro-equivalent term loan A-4, according to sources.

Pricing on the term loan A-4 is Euribor plus 400 basis points.

Meanwhile, the term loan B saw pricing firm at Libor plus 250 bps, the tight end of the Libor plus 250 bps to 275 bps talk, sources said.

As before, the B loan has a 0.75% Libor floor, a par offer price and 101 soft call protection for six months.

The company's $1.83 billion credit facility also includes a $500 million revolver, a $333 million term loan A-1 due January 2017 and a $456 million term loan A-2 due January 2017.

Proceeds will be used to refinance/reprice an existing credit facility. Current term loan B pricing is Libor plus 350 bps with a 1% Libor floor.

With this transaction, the revolver is being upsized from a current amount of $300 million, the term loan A-1 is being upsized by $150 million and the term loan B is being reduced by about $491 million.

Deutsche Bank Securities Inc. is the lead bank on the deal.

Colfax is a Fulton, Md.-based designer, manufacturer and marketer of fluid-handling products to commercial marine, oil and gas, power generation, defense and general industrial sectors.

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