Generac Power Systems to launch $879 million term loan B on Friday

By Sara Rosenberg

New York, May 10 – Generac Power Systems Inc. is scheduled to hold a lender call at 11 a.m. ET on Friday to launch an $879 million term loan B due May 2023, according to a market source.

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

Price talk on the term loan is Libor plus 175 basis points with a 0.75% Libor floor and a par issue price, the source said.

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

Proceeds will be used to reprice an existing term loan down from Libor plus 200 bps with a 0.75% Libor floor. The existing term loan is being paid down by $50 million in connection with the repricing.

Commitments are due on May 17, the source added.

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

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