Doncasters to launch $1.1 billion of dollar and euro loans this week

By Sara Rosenberg

New York, March 12 - Doncasters Group Ltd. will hold a bank meeting at 2 p.m. ET on Wednesday in New York and one at 5:30 a.m. ET on Friday in London to launch roughly $1.1 billion of covenant-light term loans, according to a market source.

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

The debt consists of a $515 million seven-year first-lien term loan, a €200 million seven-year first-lien term loan and a $325 million 71/2-year second-lien term loan, the source said.

Price talk on the U.S. first-lien loan is Libor plus 425 basis points with a 1.25% Libor floor and an original issue discount of 99, the euro term loan is talked at Libor plus 475 bps with a 1.25% floor and a discount of 99, and the second-lien term loan is talked at Libor plus 825 bps with a 1.25% floor and a discount of 98, the source said.

Included in the first-lien term loans is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Proceeds will be used to refinance existing debt.

Doncasters is a U.K.-based manufacturer of complex precision components.

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