TI Automotive trades up on buyout news; Dynacast updates first- and second-lien pricing

By Sara Rosenberg

New York, Jan. 27 – TI Automotive’s term loan headed higher in the secondary market on Tuesday following an announcement that the company is being acquired by Bain Capital.

Meanwhile, in the primary market, Dynacast International reduced pricing on its first-lien term loan while sweeting the call protection, and finalized the original issue discount on its second-lien term loan at the wide end of guidance.

TI Automotive’s term loan was stronger with news that the company is being bought out by Bain Capital for an undisclosed sum, according to a trader.

The term loan was quoted at 99¼ bid, par offered, up from 99 bid, 99¾ offered, the trader said.

The company has obtained a financing commitment to help fund the transaction.

Closing on the buyout is expected in mid-year, subject to approval from TI Automotive shareholders, a substantial majority of which have pledged to support the deal, regulatory review and other customary conditions.

Goldman Sachs & Co. and UBS Securities LLC are financial advisors to Bain. Blackstone Advisory Partners is serving as financial advisor to an ad hoc group of shareholders of TI Automotive.

Moving to the new deal front, Dynacast trimmed the spread on its $530 million seven-year first-lien term loan (Ba3/B) to Libor plus 425 basis points from talk of Libor plus 450 bps to 475 bps and extended the 101 soft call protection to one year from six months, a market source said.

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