Key Safety ups first-lien term loan, cancels second-lien tranche

By Sara Rosenberg

New York, July 22 – Key Safety Systems Inc. upsized its seven-year first-lien term loan to $525 million from $420 million, downsized its revolver to $75 million from $80 million and eliminated the $100 million eight-year second-lien term loan from its capital structure, according to a market source.

Also, pricing on the first-lien term loan was lifted to Libor plus 375 basis points from revised talk of Libor plus 350 bps, but still the tight end of initial talk of Libor plus 375 bps to 400 bps, the source said.

In addition, the 101 soft call protection was extended to one year from six months.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99½, which was revised the other day from 99.

The canceled second-lien term loan was priced at Libor plus 700 bps with a 1% Libor floor and a discount of 99 and had call protection of 102 in year one and 101 in year two.

Earlier in syndication, pricing on the second-lien loan was reduced from talk of Libor plus 725 bps to 750 bps.

Recommitments are due at noon ET on Wednesday, the source added.

UBS AG, Citigroup Global Markets Inc. and Nomura are the joint bookrunners on the $600 million credit facility.

Proceeds will be used to fund the buyout of the company by FountainVest Partners from Crestview Partners.

Key Safety Systems is a Sterling Heights, Mich.-based supplier of automotive safety restraint systems and components.

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