Grede Holdings ups talk on $175 million term B to Libor plus 600 bps

By Sara Rosenberg

New York, March 29 - Grede Holdings LLC raised price talk on its $175 million term loan B (B1/B+) to Libor plus 600 basis points from Libor plus 550 bps and widened the original issue discount to 98½ from 99, according to a market source.

As before, the loan is being talked with a 1.5% Libor floor and 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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