Global Brass and Copper cuts term loan to $315 million, ups spread to Libor plus 825 bps

By Sara Rosenberg

New York, Aug. 13 - Global Brass and Copper Inc. downsized its five-year term loan (B) to $315 million from $330 million and increased pricing to Libor plus 825 basis points from Libor plus 750 bps, according to a market source.

As before, the term loan has a 2% Libor floor, is being offered at an original issue discount of 97, and carries call protection 105 in year one, 103 in year two and 101 in year three, the source said.

Goldman Sachs is the lead bank on the term loan.

The company is also getting a $150 million ABL revolver with its existing bank group. Wells Fargo is leading this tranche.

Proceeds from the term loan and ABL revolver will be used to refinance an existing $380 million ABL revolver and $60 million term loan.

The downsizing to the new term loan was the result of the company generating excess cash that was not reflected in the original deal terms. This excess cash is also being used to reduce the amount drawn on the new revolver at close to around $25 million from around $30 million, the source explained.

Leverage is 3.7 times, down from 3.96 times under the original proposal.

Global Brass and Copper is an East Alton, Ill.-based manufacturer and distributor of copper and copper-alloy sheet, strip, plate, foil, rod and fabricated components.

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