Grede Holdings talks $600 million term loan at Libor plus 350-375 bps

By Sara Rosenberg

New York, May 6 - Grede Holdings LLC launched on Tuesday its $600 million term loan with price talk of Libor plus 350 basis points to 375 bps with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company's $675 million credit facility (B1) also includes a $75 million revolver.

Commitments are due on May 19, the source added.

Goldman Sachs Bank USA, GE Capital Markets, Nomura and RBC Capital Markets are the lead banks on the deal.

Proceeds will be used to help fund the buyout of the company by American Securities LLC.

Grede is a Southfield, Mich.-based producer of engineered iron castings to the automotive, medium and heavy truck and industrial markets.

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