Gates Global launches $575 million term loan at SOFR plus 375-400 bps

By Sara Rosenberg

New York, Nov. 7 – Gates Global held a lender call at 10 a.m. ET on Monday to launch a $575 million seven-year senior secured covenant-lite term loan B that is talked at SOFR plus 375 basis points to 400 bps with a 0.5% floor and an original issue discount of 96, according to a market source.

The term loan has 101 soft call protection for six months, 0 bps CSA and amortization of 1% per annum, the source said.

Mandatory prepayments are from 50% of excess cash flow with step-downs to 25% and 0% at 4.25x and 3.75x first-lien net leverage, 100% of indebtedness, except for permitted indebtedness, and 100% of asset sales, subject to customary reinvestment rights.

Security is a first priority perfected lien on the non-ABL collateral and a second priority perfected lien on the ABL collateral, subject to customary exceptions.

Expected term loan ratings are Ba3/B+.

Citigroup Global Markets Inc. is the left lead arranger on the deal. Credit Suisse is the administrative agent.

Commitments are due at noon ET on Wednesday, the source added.

Proceeds will be used to refinance the company’s existing euro term loan B and pay related fees and expenses.

Closing is expected during the week of Nov. 14.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.