Gates Global launches $1.38 billion term loan at Libor plus 275 bps

By Sara Rosenberg

New York, Feb. 10 – Gates Global LLC was scheduled to hold a lender call at 11 a.m. ET on Wednesday to launch a $1.377 billion covenant-lite first-lien term loan (B1/B+) due March 2027 that is talked at Libor plus 275 basis points with a 1% Libor floor and an original issue discount of 99.5 to 99.75, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Barclays, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Goldman Sachs Bank USA and Blackstone are the lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Feb. 18, the source added.

Proceeds will be used to refinance an existing term loan due March 2024 that is priced at Libor plus 275 bps with a 1% Libor floor.

Gates is a Denver-based manufacturer of application-specific fluid power and power transmission solutions.

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