Generac Power Systems to launch $1.15 billion term loan B on Friday

By Sara Rosenberg

New York, May 2 - Generac Power Systems Inc. will hold a call at 11 a.m. ET on Friday to launch a $1.15 billion seven-year senior secured term loan B, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

Price talk on the term loan B is Libor plus 300 basis points with a 1% Libor floor and an original issue discount of 991/2, the source said.

The B loan has 101 soft call protection for six months.

Proceeds will be used to refinance an existing term loan and pay a special dividend to common shareholders of up to $5 per share.

In addition to the term loan, the company plans on getting a $150 million asset-based revolver, which is expected to be undrawn at close.

Generac is a Waukesha, Wis.-based designer and manufacturer of generators.

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