Columbus McKinnon to launch $75 million add-on term loan on Tuesday

By Sara Rosenberg

New York, Nov. 15 – Columbus McKinnon Corp. will hold a lender call at 12:30 p.m. ET on Tuesday to launch a fungible $75 million add-on term loan due 2028, according to a market source.

JPMorgan Chase Bank is the lead on the deal.

Pricing on the add-on term loan is Libor plus 275 basis points with a 0.5% Libor floor, in line with existing term loan pricing.

The add-on term loan is talked with an original issue discount of 99.75 and has ticking fees of half the margin starting on Dec. 31 and the full margin after Jan. 31, the source said.

Commitments are due at 5 p.m. ET on Thursday.

Proceeds will be used to fund the acquisition of Garvey Corp., an accumulation systems solutions company, for $74 million.

Closing is expected this year.

Pro forma net debt leverage is expected to be about 2.8x.

Columbus McKinnon is a Getzville, N.Y.-based designer, manufacturer and marketer of intelligent motion solutions for material handling.

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