Husky ups term loan B to $2.1 billion, flexes to Libor plus 300 bps

By Sara Rosenberg

New York, March 16 – Husky Injection Molding Systems (Titan Acquisition Ltd.) upsized its seven-year covenant-light term loan B to $2.1 billion from $2 billion and reduced pricing to Libor plus 300 basis points from talk in the range of Libor plus 325 bps to 350 bps, according to a market source.

Also, the original issue discount on the term loan was tightened to 99.75 from 99.5 and the MFN was changed to 50 bps for 24 months from 75 bps for 12 months, the source said.

In addition, the fixed-charge coverage ratio “no worse than” prior or above 2 times prong was removed from the incremental, the step-downs were removed from asset sales, ratios based on first-lien and secured net leverage were increased 0.3 times, consistent with the term loan upsize, and various baskets were revised.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Goldman Sachs Bank USA, Barclays and BMO Capital Markets are the bookrunners on the deal.

Proceeds will be used to help fund the buyout of the company by Platinum Equity from Berkshire Partners and Omers Private Equity for $3.85 billion.

Other funds for the transaction will come from $650 million of senior notes, downsized from $750 million with the term loan upsizing, the source added.

Recommitments were scheduled to be due at 1:30 p.m. ET on Friday.

Closing is expected in the second quarter, subject to regulatory approval.

Husky is a Bolton, Ont.-based supplier of injection molding equipment and services to the plastics industry.

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