Grede Holdings to launch $265 million credit facility on Wednesday

By Sara Rosenberg

New York, March 15 - Grede Holdings LLC is scheduled to hold a bank meeting on Wednesday to launch a $265 million senior secured credit facility, according to a market source.

Bank of America Merrill Lynch and GE Capital Markets are the lead banks on the deal.

The facility consists of a $90 million ABL revolver and a $175 million term loan B (B1), the source said.

Price talk on the term loan B is Libor plus 550 basis points to 575 bps with a 1.5% Libor floor and an original issue discount that is still to be determined, the source added.

Proceeds will be used to fund the acquisition of two foundries in Mexico from Grupo Proeza and to pay a shareholder distribution.

The acquisition is pending Mexican regulatory approval and is expected to close by the end of the first quarter.

Grede is a Southfield, Mich.-based designer, developer and manufacturer of cast, machined and assembled components for the transportation and industrial markets.

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