Hamilton Sundstrand lifts term loan B size, flexes pricing lower

By Sara Rosenberg

New York, Dec. 4 - Hamilton Sundstrand Industrial upsized its seven-year covenant-light term loan B to $1.675 billion from $1.55 billion and lowered pricing to Libor plus 375 basis points from talk of Libor plus 400 bps to 425 bps, according to a market source.

The 1.25% Libor floor and original issue discount of 99 were left unchanged.

The company's now $1.975 billion senior secured credit facility (B1/B+), up from $1.85 billion, also includes a $300 million five-year revolver.

Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., RBC Capital Markets LLC, UBS Securities LLC and Goldman Sachs & Co. are the lead banks on the debt.

Proceeds will be used to help fund the buyout of the company by BC Partners and Carlyle Group from United Technologies Corp. for $3.46 billion.

Other funds for the transaction will come from $650 million of senior notes and equity. The notes were downsized from $775 million with the term loan upsizing, the source added.

Closing is expected this quarter, subject to regulatory approval and customary conditions.

Hamilton Sundstrand is a Windsor Locks, Conn.-based manufacturer of highly engineered, mission-critical pumps and compressors for the industrial, infrastructure and energy markets.

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