Grohe lifts term loan to €375 million, cuts U.S. discount to 99

By Sara Rosenberg

New York, May 11 - Grohe AG upsized its first-lien covenant-light term loan due 2017 to €375 million from €300 million and tightened the original issue discount on the U.S. piece to 99 from 981/2, according to a market source.

The final breakdown on the loan is €175 million and $260 million, versus earlier talk of €100 million and $250 million, the source said.

The euro piece was sold in line with talk at a discount of 981/2.

Pricing on the entire term loan remained at Libor/Euribor plus 550 basis points with a 1.25% floor.

There is 101 soft call protection for one year.

Recommitments are due at the close of business on Monday, the source added.

Credit Suisse Securities (USA) LLC, Morgan Stanley Senior Funding Inc. and Deutsche Bank Securities Inc. are the lead banks on the deal.

Proceeds will be used to refinance floating-rate notes.

Additionally, because of the upsizing, some 8 5/8% notes due 2014 will be repaid as well.

Grohe is Dusseldorf, Germany-based manufacturer and supplier of sanitary fittings.

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