Dematic cuts spread on $540 million term loan B to Libor plus 400 bps

By Sara Rosenberg

New York, Dec. 17 - Dematic reduced pricing on its $540 million term loan B to Libor plus 400 basis points from Libor plus 475 bps, according to a market source.

The 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left unchanged.

The term loan B includes a $50 million deposit letter-of credit facility.

Also part of the company's $615 million credit facility (B1) is a $75 million revolver.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Barclays are the lead banks on the deal.

Proceeds will be used to help fund AEA Investors and Teachers' Private Capital's buyout of the company from Triton.

Leverage through the loan is 3.5 times.

As part of the transaction, around €450 million of outstanding bonds will be redeemed.

Closing is expected by January, subject to regulatory approval.

Dematic is an engineering company that provides intelligent warehouse logistics and materials handling solutions.

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