Allied Specialty floats talk in Libor plus 700-800 bps area on B loan

By Sara Rosenberg

New York, Dec. 9 - Allied Specialty Vehicles Inc. has seen price talk track higher on its $165 million six-year term loan B (B2/B+), with some accounts hearing that the spread could come in the Libor plus 700 basis points to 800 bps range, according to a market source.

By comparison, at launch, talk on the B loan had been Libor plus 525 bps to 550 bps.

In addition, the original issue discount on the deal is being whispered in the 97 to 98 area, as opposed to just at 98, the source said.

There's no talk of changing the 1.75% Libor floor.

However, it is thought that call protection would be added to the term loan B and that amortization will be stronger, the source continued.

The company's $265 million credit facility also includes a $100 million five-year asset-based revolver.

JPMorgan is the left lead bank on the deal.

Proceeds will be used for a recapitalization.

Allied Specialty is a manufacturer of specialty vehicles in the recreational vehicle, fire, ambulance, bus, terminal truck and industrial sweeper markets.

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