Gundle/SLT ups term loan to $135 million, sets revolver at $25 million

By Sara Rosenberg

New York, May 20 - Gundle/SLT Environmental Inc. upsized its first-lien term loan (B3/B-) to $135 million from $125 million and firmed its revolver (B3/B-) size at $25 million, down from talk of $40 million to $45 million, according to a market source.

Pricing on the first-lien term loan is set at Libor plus 550 basis points, the wide end of the Libor plus 525 bps to 550 bps talk, with a 1.5% Libor floor and an original issue discount of 99, the source said.

The company is also getting a $40 million second-lien term loan (Caa1/CCC+) that is priced at Libor plus 950 bps plus 200 bps PIK, after flexing up from talk of Libor plus 875 bps to 900 bps. As before, there is a 1.5% Libor floor and an original issue discount of 98, the source continued.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

Jefferies & Co. and GE Capital Markets are the lead banks on the now $200 million deal, down from up to $210 million.

Proceeds will be used to refinance existing ABL credit facility debt and notes.

The deal is oversubscribed and expected to close/fund during the week of May 23.

Gundle/SLT is a Houston-based manufacturer and marketer of geosynthetic lining products and services.

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