Grede Holdings talks $175 million term loan B at discount of 99

By Sara Rosenberg

New York, March 21 - Grede Holdings LLC is talking its $175 million term loan B (B1/B+) at an original issue discount of 99, according to a market source.

In addition, pricing on the B loan has been narrowed down to Libor plus 550 basis points with a 1.5% Libor floor.

Prior to the deal's bank meeting held Wednesday, talk was being circulated in the Libor plus 550 bps to 575 bps area with a 1.5% floor and a discount that was still to be determined.

The loan includes 101 soft call protection for one year.

The company's $265 million senior secured credit facility also includes a $90 million ABL revolver.

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

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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