Grede Holdings withdraws $265 million credit facility from market

By Sara Rosenberg

New York, March 31 - Grede Holdings LLC pulled its $265 million senior secured credit facility due to market conditions, according to a source.

The facility consisted of a $90 million ABL revolver and a $175 million term loan B (B1/B+) talked at Libor plus 600 basis points, after flexing up from Libor plus 550 bps, with a 1.5% Libor floor and an original issue discount of 98½ that was widened from initial talk of 99.

The term loan B included 101 soft call protection for one year.

Bank of America Merrill Lynch and GE Capital Markets were acting as the lead banks on the deal.

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

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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