Generac shifts funds, cuts term B pricing to Libor plus 275 bps

By Sara Rosenberg

New York, Feb. 1 - Generac Power Systems Inc. upsized its five-year term loan A to $325 million from $250 million and downsized its seven-year term loan B to $250 million from $325 million, according to a market source.

Also, pricing on the term loan was reduced to Libor plus 275 basis points from Libor plus 300 bps and the original issue discount tightened to 99½ from 99, the source said.

The 1% Libor floor on the term loan B and 101 soft call protection for one year were left unchanged.

The company's $725 million senior secured credit facility (Ba3/BB+) still includes a $150 million five-year revolver.

Pricing on the revolver and term loan A is Libor plus 225 bps.

Recommitments are due by noon ET on Thursday.

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.

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

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