Mauser launches €89 million U.S. dollar equivalent add-on term loan

By Sara Rosenberg

New York, June 8 – Mauser Group held a lender call at 11 a.m. ET on Monday to launch an €89 million U.S. dollar equivalent add-on first-lien covenant-light term loan due 2021 and an amendment to its existing first- and second-lien covenant-light term loans, according to a market source.

Credit Suisse Securities (USA) LLC and Nomura are the leads on the deal.

Pricing on the add-on term loan is Libor plus 350 basis points with a 1% Libor floor, in line with current first-lien term loan pricing, and the new debt is being offered at an original issue discount of 99 to 99.5, the source said.

All of the first-lien term loan debt will have 101 soft call protection for one year.

With the amendment, the spread on the existing second-lien term loan due 2022 will be lifted to Libor plus 775 bps from Libor plus 725 bps and the 1% Libor floor will be unchanged.

The second-lien term loan will have call protection of 102 in year one and 101 in year two, with a 101 initial public offering carve-out.

Existing first-lien lenders are being offered a 15 bps amendment fee, and second-lien lenders are being offered a 75 bps amendment fee.

Proceeds from the add-on loan will be used to fund a shareholder dividend.

The amendment to the existing term loans is to allow for the dividend.

Commitments are due at noon ET on Friday, the source added.

Mauser is a Bruehl, Germany-based industrial packaging company.

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