Mauser sets €89 million U.S. dollar equivalent add-on loan OID at 99.5

By Sara Rosenberg

New York, June 12 – Mauser Group firmed the original issue discount on its €89 million U.S. dollar equivalent add-on first-lien covenant-light term loan (B2) due 2021 at 99.5, the tight end of the 99 to 99.5 talk, according to a market source.

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.

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

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

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

The company is amending its existing credit facility to allow for the dividend, and as part of the amendment, pricing on the existing covenant-light 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 offered a 15 bps amendment fee, and second-lien lenders are offered a 75 bps amendment fee.

Allocations are expected on Monday, the source added.

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

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