Generac details structure, price talk on $725 million credit facility

By Sara Rosenberg

New York, Jan. 17 - Generac Power Systems Inc. came out with tranching and price talk on its proposed $725 million senior secured credit facility (Ba3/BB+) as the deal launched with a bank meeting in Chicago, according to market sources.

The facility consists of a $150 million five-year revolver and a $250 million five-year term loan A, both talked at Libor plus 225 basis points, and a $325 million seven-year term loan B talked at Libor plus 300 bps with a 1% Libor floor and an original issue discount of 99, sources said.

The term loan B has 101 soft call protection for one year.

J.P. Morgan Securities LLC, Goldman Sachs & Co. and Bank of America Merrill Lynch are the lead banks on the deal.

Proceeds will be used to refinance a revolver due in November 2012 and a term loan due in November 2013 as well as for other general corporate purposes.

Commitments are due on Jan. 31.

Generac is a Waukesha, Wis.-based designer and manufacturer of generators and other engine-powered products.

© 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.