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Manitowoc upsizes term A to $1.025 billion, downsizes term B to $1.2 billion
By Sara Rosenberg
New York, Aug. 20 - Manitowoc Co. Inc. increased the size of its five-year term loan A to $1.025 billion from $900 million and decreased the size of its six-year term loan B to $1.2 billion from $1.325 billion, according to a market source.
In addition, while pricing on the term loan B was left unchanged at Libor plus 350 basis points, a step-down to Libor plus 325 bps was added that becomes effective when leverage is below 2.0 times, the source said.
The term loan B still has a 3% Libor floor and an original issue discount of 98.
Pricing on the term loan A remained at Libor plus 325 bps.
Manitowoc's $2.925 billion credit facility (Ba2/BB+) also includes a $400 million five-year revolver and a $300 million 18-month term loan X, with both of these tranches priced at Libor plus 325 bps as well.
JPMorgan, Deutsche Bank, Morgan Stanley and BNP Paribas are the joint lead arrangers and joint bookrunners on the deal, with JPMorgan the administrative agent, Deutsche and Morgan Stanley the syndication agents, and BNP the documentation agent.
Proceeds will be used to help fund the acquisition of Enodis plc for 328 pence per Enodis share, resulting in a transaction valued at about $2.7 billion, including the assumption of Enodis' net debt, which was about $249 million/£125 million as of March 29.
The transaction is expected to close in the fourth quarter and it will be structured as a court-sanctioned scheme of arrangement under the laws of the United Kingdom.
Manitowoc is a Manitowoc, Wis.-based provider of lifting equipment for the construction industry, manufacturer of cold-side equipment for the foodservice industry, and provider of shipbuilding, ship repair and conversion services. Enodis is a Tampa, Fla.-based food and beverage equipment manufacturer.
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