Husky Injection increases first-lien debt plans by $150 million

By Sara Rosenberg

New York, Jan. 30 – Husky Injection Molding Systems Ltd. is upsizing its first-lien debt by $150 million and reducing its new preferred equity by $150 million, according to a market source.

As a result of the $150 million upsizing, the company’s final five-year covenant-lite term loan B size, which was originally $1.3 billion, is now to be determined, and the company’s final secured notes size, which was originally $1.3 billion, is now to be determined, the source said.

Talk on the term loan (B3/B-) remained at SOFR plus 525 basis points with a 0% floor, an original issue discount of 98 and 101 soft call protection for six months.

Portability is subject to minimum 50% pro forma third-party equity, a new controlling holder being either at least $1 billion AUM or a strategic or other corporate business in reasonably related line of business, no worse corporate ratings of B3/B- with stable outlooks, and total net leverage to be no worse than 6x.

Deutsche Bank Securities Inc., BofA Securities Inc. and others to be announced are the bookrunners on the term loan. Deutsche is the administrative agent.

BofA Securities, Deutsche Bank, Barclays, BMO, Goldman Sachs, NBC and TD are the joint bookrunners on the bonds.

Commitments for the term loan are due at noon ET on Wednesday, accelerated from 5 p.m. ET on Wednesday, the source added.

Proceeds from the debt and equity will be used to refinance the company’s existing capital structure, including senior notes due 2026, senior PIK notes due 2025 and credit facilities borrowings, and to pay respective fees and expenses.

Husky is a Bolton, Ont.-based provider of engineered tooling, services and systems primarily to the food and beverage packaging and medical end markets.

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